Short-term headwinds pressure MDI,TDI Long-term fundamentals positive but producers feeling the pain on price

摘要

The long-term fundamentals for methylene di-para-phenylene isocyanate(MDI)and toluene diisocyanate(TDI)remain positive,but short-term demand headwinds and supply overcapacity-particularly for TDI-are unlikely to change,with the financial impact being felt by leading producers.MDI and TDI manufacturers tried hard to achieve price increases during October but have generally failed in their quest,according to IHS Markit’s latest Global Polyurethanes Feedstocks Monthly Report.The markets remain comfortable from a supply perspective and this has helped consumers fend off any push for price gains,the report says.One of those producers,Covestro,flagged deteriorating prices and margins in MDI and TDI as the main drivers of a 14.6% decline of €686 million($760 million)year on year(YOY)in the company’s total third-quarter sales.Covestro recorded”strong core volume growth”for isocyanate products,according to CEO Markus Steilemann in a call with investment analysts.However,overall industry plant utilization remained”at a low level due to additional capacities added during the last 15 months,”he says.