Europe Toluene Diisocyanate Industry Experience Significant Drop in Prices Amid Demand Disruption

In the European region, the Toluene Diisocyanate price decreased by almost 1% during the first half of the December 2023 amid depressed demand and procurement activities from the end-user industries. As per the market sources, Germany's passenger car sales index fell by 5.7% during November 2023, and this declining trend in the Automotive industry kept the Toluene Diisocyanate inquiries sluggish from the Polyurethane segment. Similarly, orders were feeble from the manufacturing sector as the procurement activities decreased from the buyers with the arrival of winter.

The availability of previous stocks of Toluene Diisocyanate was adequate in the regional market. In November 2023, the Toluene Diisocyanate price trend consistently demolished, and suppliers reduced their quotations in the European market due to sluggish consumption rates from the end-user Polyurethane segment. According to the sources, the new orders dropped again from the buyers during November 2023, and inquiries remained low amid sluggish stocking activities in the region before peak winter. At the same time, Eurozone's manufacturing Purchasing Manager's Index decreased again in November 2023 and remained below 50 due to the decline in new orders and buying activities from the buyers, indicating a subsequent contraction in the manufacturing sector activities.

At the same time, the Toluene Diisocyanate supply rates were steady as shipping rates were consistent from the European hubs during the past month. However, offtakes for Toluene Diisocyanate remained low from the buyers. It raised the product inventory levels as market sentiments for Toluene Diisocyanate continued to remain underwhelming especially after the increased consumption rates of bio-based Polyurethane materials and components in the region.

At the same time, the cost support declined from the feedstock Toluene during the week due to reduced offtakes and improved feedstock availability amid a reduction in the Brent Crude Oil prices after the resumed refinery operations and increased refining capacity in the North American region.

According to the ChemAnlayst data sources, the Toluene Diisocyanate FD Hamburg quotations in Germany hovered at USD 2420/MT on 22nd December 2023.

As per the assessment, the Toluene Diisocyanate price trend will remain persistent till the end of the year. Reason is the firm availability of stocks in the international markets and destocking practices by China towards the end of the year. However, prices are anticipated to incline with the beginning of the first quarter of 2024. The productions will remain low during winter with simultaneous inadequate availability of feedstock Toluene. Furthermore, the restocking practices begin in the Asian region during the Q1, so the availability of supplies will be affected in the market.