Toluene di-isocyanate (TDI) prices globally are likely to fall further as the market moves from a sustained period of tightness into overcapacity and lower operating rates as it rebalances following the re-start of BASF’s TDI facility at Ludwigshafen, Germany. The 300,000 tonne/year facility had been due to start up in 2016 but a series of technical problems delayed full restart until now.

the global tdi market had been relying on this start-up, plus the 200,000 tonnes/year sadara facility in saudi arabia, to balance supply and demand following the closure of other facilities back in 2014-16.

However, the BASF and Sadara start-ups were delayed and a series of other shutdowns and force majeures added to the tightness causing prices to soar, and the spread from feedstock toluene widen, from 2016-2018 as the price chart shows.