September-October 2011 European and U.S. TDI Market Review

North American Market:
Compared with other regions, the U.S. TDI market rebounded more, but overall, the North American market fell slightly in October. TDI prices are lowered by 2-3 cents/lb to 122-132 cents/lb. In the uncertain economic situation, the market demand is bleak, and most downstream users purchase on demand. The market is very bearish and the furniture and mattress sales are affected.

European market:
Downstream buyers continued to make cautious short-term purchases, and the average vendor received orders from users four weeks ago. However, the current order received on the market spans 10-15 days. Manufacturers inventory remains low to reduce the risk of high positions. The trend of TDI market demand next month is difficult to predict.

Manufacturers indicated that the oversupply situation caused TDI prices to fall again and again, ranging from US$30-50/tonne. The current price of TDI is 1820-1900 euros/ton, and in September it is 1880-1920 euros/ton.

Bosu Chemical has established a new 160,000-ton/year TDI plant in Bauzci, Kauzin, Hungary. If the market demand is good, the production capacity is expected to increase to 200,000 tons/year. Due to the current downturn in the market, the new device has not yet released its full capacity.

Middle East and Africa:
The TDI market in the Middle East and Africa is very competitive. The price of Korean TDI was as low as US$2,300/tonne. Affected by the sluggish demand from the Chinese market, Asian manufacturers placed TDI in sales in the Middle East and Africa; European TDI offers ranged from US$2,300 to 2,550/ton.