SunSirs: TDI Market Rose from High Levels This Week (March 23–27)

Price trend

According to the SunSirs Commodity Market Analysis System, the TDI market in the East China region trended upward this week, reaching a high level. As of March 27, the average market price in East China stood at 18,933 RMB/ton—up from 18,266 RMB/ton on March 23—marking a weekly increase of 3.65% and a year-on-year increase of 55.19%.

The TDI market maintained its upward trend this week. As of Friday, quoted prices for domestically produced TDI in East China ranged from 18,500 to 19,000 RMB/ton, while quotes for Shanghai-origin material hovered around 18,800 to 19,500 RMB/ton. Throughout the week, TDI prices remained firm and trended upward; driven by continuously rising raw material, transportation, and energy costs, BASF announced price hikes of $500/ton for its MDI and TDI products across the East Asia region (excluding mainland China). Supplies from major domestic manufacturers remained tight, and reports of sales suspensions and closed order books bolstered market confidence. While intermediaries actively pushed for higher prices, downstream buyers demonstrated clear resistance to high-priced supplies; consequently, market activity was driven primarily by essential demand, resulting in moderate overall trading volume.

Market analysis

Supply Side: Domestic production facilities are maintaining medium-to-high operating rates, resulting in tight supply.

Cost Side: The toluene market is fluctuating in tandem with crude oil prices; downstream sectors are replenishing inventory on an as-needed basis, and buying interest remains subdued.Furthermore, global cumulative crude steel production for January and February 2026 totaled 298.2 million tonnes, a year-on-year decrease of 1.5%.

Market outlook

According to TDI analysts at SunSirs, the current TDI market is characterized by strong supply and weak demand. Influenced by the international landscape, prices are trending cautiously upward. The near-term outlook suggests that prices will remain at elevated levels; market participants should closely monitor macroeconomic factors as well as shifts in market supply and demand.

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