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Offers for European and northeast Asian TDI cargoes have been raised

December 22/2011
(ICIS) -- Offers for European and northeast Asian toluene di-isocyanate (TDI) cargoes have been raised by USD100-250/tonne (EUR77-193/tonne) for January shipments, but are meeting strong resistance from foamers based in the Middle East and Africa, industry players said on Thursday.

Fresh offers for January cargoes were released this week at USD2,450-2,600/tonne CFR (cost & freight) Middle East/Africa, depending on the lot size, destination and arrival date. TDI producers raised offers in a bid to recoup losses after prolonged and pronounced margin erosion, industry players added.

In addition, persistently weak domestic markets in Europe and northeast Asia placed pressure on TDI producers in these regions to offload their products in the import-dependent Middle East and Africa markets, they added.

УTDI prices have been on the downtrend for the past few months, while upstream toluene prices are still holding quite firm. As a result, our margins have fallen so much that we are bleeding. In October and November, we have no choice but to reduce operating rates,Ф a European TDI maker said.
European and northeast Asian producers are operating TDI plants at an average of 80-90% of capacity, with some running at minimum rates in October and November, sources close to the producers said.

Another global major based in Germany and a European maker offered January lots at USD2,550/tonne CFR Middle East/Africa, market players said. A South Korean producer offered January shipments at USD2,450/tonne CFR GCC (Gulf Cooperation Council)/North Africa, while another South Korean maker has no material to offer because of the ongoing shutdown at its TDI facilities. A Japanese maker raised its January offers by USD100-150/tonne to USD2,550/tonne CFR GCC/Africa, after concluding business at USD2,400-2,450/tonne last week.

Author:Marina Ivanova
Category:General News
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