Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • Technical paper: Varying Si-substituents for rubber silanes
      White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
March 27, 2017 12:00 AM

Global MDI and TDI tightness continues

Shahrzad Pourriahi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    London - Worldwide isocyanates markets have been bullish during the first quarter of 2017, although polyether polyol markets have been much less volatile.

    During quarter one, MDI supply became tighter globally following a number of planned shutdowns.  MDI prices in China rose substantially especially in February and March, due to a spate of production outages.  BASF’s Chongqing MDI plant (400ktpa) is currently down due to problems with syngas supply.  Wanhua has delayed a planned shutdown at one of its Ningbo units due to the short supply situation in China.  The 800ktpa plant will go down in May for a maintenance turnaround, and it is currently running at reduced rates.

    MDI producers in Europe announced sizeable price increases for March amounting to €200-250/tonne.  This was based on the tight market conditions, as well as a recent run-up in feedstock benzene contract prices.  Back in the fourth quarter 2016, European MDI prices spiked after Covestro’s declared force majeure on its MDI (and TDI) supply in Europe.  This had gone some way to restoring the MDI business to a more sustainable level for European producers, and left stocks in the market very low going into the first quarter. Supply was further impacted by a planned shutdown at a European MDI plant, which began in March.

    In North America, MDI producers also announced price increases of 10c/lb for March contracts.  As well as the tight supply position, the large increases in benzene prices during the first quarter put considerable pressure on US production margins. In January and February, US benzene contract prices rose successively by 33-40c/gal and 59-65c/gal, although by March, the benzene market had cooled off and contracts dipped back down, albeit by just 7c/gal.

    The firming trend in the global MDI market is likely to continue into April, and possibly further ahead if supply remains constricted.  The peak season for crude MDI demand into the construction sector has begun to ramp up, and this will also put continuing pressure on supply, particularly in Europe.

    RECOMMENDED FOR YOU
    Michelin targets 'around & beyond tires' in new strategy
    Michelin targets 'around & beyond tires' in new strategy
    Kuraray resumes production at Texas plants
    Kuraray resumes production at Texas plants
    BPF online event to study REACH post-Brexit
    BPF online event to study REACH post-Brexit
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 2021. NUERJ LTD. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac