Market analysts recently stated that spot prices for Asian dioxane isocyanate (TDI) in 2011 are likely to hover at low levels, especially in the second half of the year, when the oversupply situation in the Chinese market will become even more pronounced.
With the successive drive of newly built and expanded devices, the Asian TDI supply surplus will increase this year. Although demand for China's downstream market will increase by 10% this year and the Indian market will increase by 10% to 20%, Asia's TDI shipments will increase by nearly 10%, which will further increase the pressure of oversupply. TDI is mainly used for the production of foams for furniture and car seats, which is used for 60% of the country's total TDI demand. The paint industry is the second largest application area for TDI, accounting for 20% of its total demand. In mid-2011, Bayer MaterialScience will launch a 250,000-ton/year TDI plant in Shanghai. In addition, expansion projects in South Korea and China will also be completed in the second half of 2011.
With the successive drive of newly built and expanded devices, the Asian TDI supply surplus will increase this year. Although demand for China's downstream market will increase by 10% this year and the Indian market will increase by 10% to 20%, Asia's TDI shipments will increase by nearly 10%, which will further increase the pressure of oversupply. TDI is mainly used for the production of foams for furniture and car seats, which is used for 60% of the country's total TDI demand. The paint industry is the second largest application area for TDI, accounting for 20% of its total demand. In mid-2011, Bayer MaterialScience will launch a 250,000-ton/year TDI plant in Shanghai. In addition, expansion projects in South Korea and China will also be completed in the second half of 2011.