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More than 20% of the world's production capacity constraints tdi prices will rise

August 19, 2022

Latest company news about More than 20% of the world's production capacity constraints tdi prices will rise

More than 20% of the world's production capacity constraints tdi prices will rise
The full name of TDI is toluene diisocyanate, which is a wide range of important organic chemical materials in the world. The downstream is mainly used for polyhelium flexible foam, coatings, elastomers, adhesives, etc. The common objects include furniture, sofas, mattresses, car seats, etc. 


Toluene diisocyanate (TDI) has six isomers: 2,3-TDI, 2,,4-TDI, 2,5-TDI, 2,6-TDI, 3,4-TDI, 3,5-TDI. Among them, 2,4-TDI and 2,6-TDI are the most common, and industrial products are usually a mixture of 2,4-TDI and 2,6-TDI.

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The increase in TDI prices is mainly due to the influence of the supply side. According to CFI information, Covestro's 300,000-ton TDI plant in Germany experienced force majeure due to chlorine leakage, and it is expected that supply will be restored after November 30. In addition, BASF Germany's 300,000 pure TDI plant was shut down for maintenance at the end of April and has not been restarted yet. The production capacity of the above two sets of equipment accounts for about 17% of the global total. It is worth mentioning that factors such as high energy costs in Europe and the low water level of the Rhine River may also cause other installation problems.

 

Since Wanhua's 300,000-ton plant was put into operation in 2019, the TD industry has been sluggish for several years due to sufficient supply. The spread of the epidemic in the first half of the year hit the TDl market, which had improved at the beginning of the year, to another blow.

CFI predicts that after experiencing the downturn in the first half of the year, it is expected that the demand for TDI will recover in the second half of the year. Coupled with the reduction in supply caused by overseas emergencies and the cost and price difference at home and abroad, domestic TDI companies are expected to take advantage of production capacity to quickly seize Market share, and its profitability is also expected to be further improved.

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At present, China is the world's largest TDI producer with a production capacity of 1.36 million tons, accounting for about one-third of the world's total production capacity. According to customs data, in June this year, China's TDI export volume was 35,000 tons, a year-on-year increase of 65%. Affected by weak downstream demand, domestic TDI prices fell from a high of 19,800 yuan/ton in February this year to 15,500 yuan/ton in early August, hitting a new low for the year.

ChemFine International Co., Ltd. (CFI Chemical Supply) established 2003,
CFI is a comprehensive chemical trading company dedicated to the procurement of fine chemicals around the world.
It is the best choice for you to stabilize your supply chain.(www.cnchemfine.com)

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