Chinese TDI Update
TDI Prices in China Increase as BASF Halts Production in Germany
(Yicai Global) Nov. 28 — Prices of toluene diisocyanate, a key ingredient in producing flexible polyurethane foams, have increased in China on the back of a halt to production at a plant in Germany belonging to chemical giant BASF.
BASF stopped production at its 300,000 tons per year TDI plant in Ludwigshafen on Nov. 26 due to the low water levels in the River Rhine and the restart date hasn’t been decided, reported Shanghai Securities News.
In the Chinese market, Covestro’s latest guidance price for TDI from its Shanghai plant is CNY23,000 (USD3,307) per ton, an increase of CNY1,000 per ton compared with last week, and it also halted production earlier in the month to overhaul its equipment.
The world’s TDI production capacity was about 2.9 million tons last year, and TDI is in short supply now because some facilities have stopped operations.
TDI is in short supply because plants have been pre-selling it for destocking and there are no stocks available in the short-term, Guotai Junan Securities said, predicting the shortage and price hikes will continue.