Global Toluene Diisocyanate (TDI) spot prices have climbed rapidly in recent weeks, hitting multi-month highs across Asia, Europe and North America. A wave of concentrated plant maintenance is the most direct trigger. Major TDI producers including European and Asian chemical giants shut down production trains for scheduled turnaround, removing a substantial volume of global TDI supply from the market. Meanwhile, geopolitical disturbances affect upstream aromatic raw material supply and maritime transportation routes, pushing up toluene and aniline prices, which form the main cost base of TDI.
European TDI capacity faces long-term pressure from high natural gas costs and stricter environmental regulations, with many plants running at reduced operating rates. Global new TDI capacity additions remain limited in 2026, leaving little buffer against supply disruptions. Downstream flexible foam demand from bedding, furniture and automotive seating sectors remains resilient. Overseas buyers scramble to secure cargoes, and export orders for Asian TDI manufacturers keep rising, further draining available spot inventories.
For the price outlook, TDI market will stay tight through late 2026. Prices will stay firm at elevated levels until most overhauled production units fully restart. Downside risk is limited in the short run, while upside risks remain if extra force majeure events occur at key plants. Once maintenance concludes and inventory rebuilds, TDI may enter a slow downward correction phase, but prices will not return to the low levels seen in late 2025 in the near term. Buyers are advised to lock in long-term contracts cautiously and diversify supply sources.