LONDON (ICIS)– Discussions for crude methyl di-p-phenylene isocyanate (MDI) prices this month have seen increases of between €100-400/tonne, sources said this week.
A distributor said that it passed on a €400/tonne increase onto its foaming buyers with no resistance.
The wide range reflects difficulties buyers face when sourcing material. A source said suppliers taking advantage of arbitrage opportunities in Asia may be drying up supply for European buyers. There are no known issues at any other producers and shortage in Europe may be as a result of material flowing out of Europe.
Another source said it heard of potential planned maintenance at two plants that would extend the current shortage into Q1 2017.
Covestro has stated that it plans to fully restart its facility on 11 December. If it is successful it will still take time to reach full production capacity and they will need to build up inventories. A combination of these factors could see shortness extend into next year, according to sources.
The current crude MDI price stands at €1,790-1,860/tonne FD NWE.