SINGAPORE--Toluene diisocyanates (TDI) prices in Asia are expected to stage a strong rebound at the end of September when the regional polyurethane (PU) foam application sector enters the peak production season, Asian TDI end-users, traders and producers said on Thursday.
"TDI prices in the key China market are expected to continue sliding in September following the Beijing Olympics, as local and foreign suppliers will be rushing to offload inventories built up in the past weeks due to lean demand," a trader in south China said in Mandarin.
TDI demand and prices had been falling in China since mid-July as end-users had refrained from buying due to the Olympics-related curbs imposed on transportation of dangerous goods including TDI, Chinese traders and end-users said.
Prices in India and southeast (SE) Asia had been falling since the end of July as regional supplies diverted away from China were channelled to these markets, Asian traders said.
However, the Indian and SE Asian TDI markets were expected to regain losses in September when the local PU foam sectors entered the high production season, local end-users and traders said.
China s TDI prices were expected to rebound in late September as Chinese and other Asian producers would have cleared their stocks by then, and the China PU foam sector was due to ramp up production in mid-October for the Chinese New Year consumption in January, Asian traders said.
However, other Asian traders who were less confident cautioned that the fourth quarter TDI demand outlook in Asia depended on the global economic climate.
"Export orders for Chinese end-products such as mattress and furniture have fallen in recent months due to the economic slowdown in the US and Europe," one of the Asian traders said.
TDI prices assessed at $4,000-4,200/tonne CFR (cost and freight) China for the week ended 6 August were 10-15% lower from a month ago, according to global chemical market intelligence service ICIS pricing.
Values fell by nearly 2% in SE Asia and India to $4,300-4,500/tonne CFR and $4,550-4,700/tonne CFR respectively during the same period, according to ICIS pricing.
TDI is a key raw material for making polyurethane foams used in a range of industries, including the automotive and furniture sectors.
Key TDI producers in Asia include China s Cangzhou Dahua and Shanghai BASF, Japan s Mitsui Chemicals Polyurethanes, and South Korea s Korea Fine Chemical and BASF Urethane Korea.
"TDI prices in the key China market are expected to continue sliding in September following the Beijing Olympics, as local and foreign suppliers will be rushing to offload inventories built up in the past weeks due to lean demand," a trader in south China said in Mandarin.
TDI demand and prices had been falling in China since mid-July as end-users had refrained from buying due to the Olympics-related curbs imposed on transportation of dangerous goods including TDI, Chinese traders and end-users said.
Prices in India and southeast (SE) Asia had been falling since the end of July as regional supplies diverted away from China were channelled to these markets, Asian traders said.
However, the Indian and SE Asian TDI markets were expected to regain losses in September when the local PU foam sectors entered the high production season, local end-users and traders said.
China s TDI prices were expected to rebound in late September as Chinese and other Asian producers would have cleared their stocks by then, and the China PU foam sector was due to ramp up production in mid-October for the Chinese New Year consumption in January, Asian traders said.
However, other Asian traders who were less confident cautioned that the fourth quarter TDI demand outlook in Asia depended on the global economic climate.
"Export orders for Chinese end-products such as mattress and furniture have fallen in recent months due to the economic slowdown in the US and Europe," one of the Asian traders said.
TDI prices assessed at $4,000-4,200/tonne CFR (cost and freight) China for the week ended 6 August were 10-15% lower from a month ago, according to global chemical market intelligence service ICIS pricing.
Values fell by nearly 2% in SE Asia and India to $4,300-4,500/tonne CFR and $4,550-4,700/tonne CFR respectively during the same period, according to ICIS pricing.
TDI is a key raw material for making polyurethane foams used in a range of industries, including the automotive and furniture sectors.
Key TDI producers in Asia include China s Cangzhou Dahua and Shanghai BASF, Japan s Mitsui Chemicals Polyurethanes, and South Korea s Korea Fine Chemical and BASF Urethane Korea.
