European Toluene Diisocyanate Prices Follow Stagnant Trend Amid Weak Demand

As per the latest reports, the Toluene Diisocyanate price trend in the European region has been stable for the past couple of weeks. The prices are increasing marginally on the back of stable inventory levels of Toluene Diisocyanate. Recently the Toluene Diisocyanate prices hovered at USD 4345/MT in Germany and USD 4385/MT in Belgium after roughly increasing by 0.2% from the last week’s prices.

At the same time, the decrease in feedstock Toluene prices after the reduction in upstream Dutch TTF natural gas prices in the past few weeks eased the fixed as well as variable costs on production values of Toluene Diisocyanate.

Domestic producers cut back their production as purchases were unprofitable amid rising inflation, natural gas shortages, and soaring energy costs. The available Toluene Diisocyanate supplies were limited due to the previously curtailed production rates. Simultaneously, the demand for Toluene Diisocyanate in the downstream Polyurethane products plunged more specifically from the manufacturing sector after the Black Friday sale in late November owing to reduced orders from end-user furniture manufacturers.

Simultaneously, decreased trading activities in the European automotive sector and reduced orders for flexible foam amid limited supplies of Toluene Diisocyanate have impacted and lowered demand for other Polyurethane components, i.e., Methylene Diphenyl Diisocyanate and Polyol in the Euro region.

Furthermore, the consumer demand sentiments tilted negatively due to the weakening of their purchasing power amid high inflation and increasing energy prices. The cost of living has escalated noticeably, causing an economic slowdown in the European region. Simultaneously, the Eurozone manufacturing PMI remained slightly lower than the previous month and recorded below 50 in November 2022.

As per ChemAnalyst estimation, “The orders for Toluene Diisocyanate are likely to remain stable from the downstream Polyurethane producers till the end of the year, and demand sentiments are likely to remain seasonal from the manufacturing sector amid moderate production rates in domestic downstream industries.”