According to the latest news released by the China Financial Association: TDI is mainly used in flexible foam, coatings, elastomers, and adhesives. Among them, soft foam is the most widely used field, accounting for more than 70%. The terminal demand of TDI is concentrated in soft furniture, coatings, automobiles and other industries.
After three years of industry downturn, the current TDI market in China has stabilized. As an important organic chemical raw material, although TDI is widely used in daily life, it has not been valued by investors in the capital market in recent years.
Affected by the sharp rise in natural gas energy prices, the energy and raw material costs of the European chemical industry have increased significantly, and the European market, one of the world’s major producing regions, has seen a sharp jump in TDI prices. International chemical giant BASF even said at one point that it would scale back or completely shut down production at its largest factory in Ludwigshafen.
On the other hand, my country has maintained relatively low energy prices under the construction of traditional energy production and supply and the construction of new energy industry system, which directly leads to the alarming price gap of TDI in the domestic and foreign markets. The data shows that the price difference between Europe and China TDI once approached 1,500 US dollars / ton within this month, and there is still an expanding trend.
Analysts pointed out that there is no new production capacity in the TDI industry this year, and at the same time, some backward production capacity will be withdrawn one after another. Driven by exports, the industry supply may be relatively tight, and TDI is also expected to usher in a new round of business cycles.
Post time: Jun-17-2022