Toluene Diisocyanate (TDI) is a crucial chemical compound used in the production of flexible polyurethane foams, which are primarily utilized in the automotive, construction, and furniture industries. TDI is also a vital component in coatings, adhesives, sealants, and elastomers. Due to its significant role in these industries, understanding the TDI price trend is essential for businesses involved in procurement, production, and sales. This article explores the latest Toluene Diisocyanate price trend historical price movements, market forecasts, regional insights, and more.
Current Toluene Diisocyanate Price Trends
As of mid-2025, TDI prices have been on an upward trajectory due to a variety of factors, including rising raw material costs, supply chain disruptions, and strong demand from key end-use industries. TDI prices are closely linked to the cost of its feedstock, toluene, which is derived from petroleum. As crude oil prices fluctuate, the cost of toluene—and subsequently TDI—also varies.
In 2025, TDI prices have increased, largely driven by a surge in demand for flexible foams in industries such as automotive, construction, and furniture. The automotive sector, in particular, has seen increased use of polyurethane foams for car seats, insulation, and cushioning materials, which has led to higher consumption of TDI. Additionally, supply chain constraints in the global chemical market have further fueled the upward trend in TDI prices.
The price increases in TDI are also a result of logistical challenges and rising energy costs, particularly in Europe and North America. These factors have led to disruptions in production and transportation, which have contributed to higher prices. Despite these increases, the TDI market remains strong, supported by continued demand from the construction and automotive sectors.
Historical Price Movement
Historically, TDI prices have shown considerable volatility, largely due to fluctuations in the price of crude oil, toluene, and other raw materials. In the early 2010s, TDI prices were relatively stable, ranging between USD 2,200 and USD 2,500 per metric ton. However, the market saw significant fluctuations in the years following, with prices reaching as high as USD 3,000 per metric ton during periods of high demand and low supply.
In 2020, the COVID-19 pandemic caused global disruptions, leading to reduced production and a temporary dip in TDI prices. The pandemic also led to an initial slowdown in demand from key industries. However, as the global economy recovered in 2021 and 2022, demand for TDI surged, particularly in the automotive and construction sectors, which pushed prices higher. By 2022, TDI prices had risen to approximately USD 3,200 per metric ton.
In 2023, the price of TDI continued to rise due to increased demand for polyurethane foams in the automotive and construction industries, coupled with supply chain challenges. Prices in 2023 ranged between USD 3,300 and USD 3,600 per metric ton, reflecting the tight supply and increased production costs.
Market Analysis and Forecast
The global TDI market is expected to continue growing steadily over the next decade. In 2024, the TDI market was valued at approximately USD 15.8 billion and is projected to reach USD 24.5 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.5%. Several factors are contributing to this growth:
- Rising Demand from the Automotive Industry: The automotive sector remains one of the largest consumers of TDI, particularly for the production of flexible foams used in car seats, headrests, and other interior components. As the global automotive industry continues to grow, particularly with the rise of electric vehicles (EVs), the demand for TDI is expected to increase.
- Construction and Furniture Sectors: The growing demand for insulation materials, flooring, and other polyurethane-based products in the construction industry is driving the consumption of TDI. Additionally, the growing popularity of polyurethane foams in the furniture industry, particularly in bedding and cushioning products, is contributing to increased demand.
- Technological Advancements in Production: Innovations in TDI production technologies, such as improved manufacturing processes and more efficient raw material usage, are expected to drive cost savings and help stabilize prices over the long term. These advancements will also enable manufacturers to meet rising demand while reducing production costs.
- Sustainability Trends: As consumers and industries continue to push for more sustainable products, the demand for TDI derived from renewable resources or with reduced environmental impacts may increase. This trend toward sustainability may affect TDI production methods and pricing in the coming years.
Given these factors, TDI prices are expected to rise gradually, with occasional fluctuations driven by supply and demand imbalances, raw material costs, and geopolitical factors. The market is expected to remain strong, supported by continued demand from the automotive, construction, and furniture sectors.
Regional Market Insights
Asia-Pacific
The Asia-Pacific region is the largest market for TDI, with China, India, and Japan being major consumers and producers. China, as the largest producer and consumer of TDI, accounts for a significant portion of the global market. In recent years, demand for TDI has surged due to the growing automotive and construction industries in the region.
In China, the demand for TDI is expected to continue rising, driven by the growing automotive market, the increasing demand for energy-efficient buildings, and the need for sustainable construction materials. India and Southeast Asia are also experiencing increased consumption of TDI, fueled by rapid urbanization, industrialization, and infrastructure development.
In the Asia-Pacific region, TDI prices are expected to increase gradually, following global trends, although price fluctuations will depend on local production capacity, raw material availability, and transportation costs.
North America
In North America, TDI is widely used in the automotive, construction, and furniture industries. The demand for flexible polyurethane foams in these sectors continues to grow, driven by consumer preferences for comfort, energy efficiency, and sustainability. Additionally, the growing demand for electric vehicles (EVs), which often require advanced materials like polyurethane foams, is expected to contribute to higher TDI consumption.
The U.S. and Canada are key markets for TDI in North America, with the automotive sector driving much of the demand. However, rising energy costs and supply chain disruptions have pushed up production costs, leading to higher TDI prices. The North American TDI market is expected to continue growing, with price increases expected in line with global trends.
Europe
In Europe, the demand for TDI is strong in the automotive, construction, and furniture industries. The region is a significant consumer of polyurethane foams, particularly in the automotive and construction sectors, where TDI is used for applications such as insulation, seating, and cushioning.
The European Union's commitment to sustainability and energy-efficient construction is expected to drive the demand for TDI in the coming years. Additionally, the growing focus on renewable energy and environmentally friendly automotive solutions is contributing to increased demand for polyurethane-based products, which will boost TDI consumption.
The European TDI market is likely to experience gradual price increases as demand for polyurethane products continues to rise. However, regional production constraints and raw material availability may lead to occasional fluctuations in TDI prices.
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Staying informed about TDI price trends and market conditions is essential for businesses involved in sourcing this key chemical. Platforms like Procurement Resource provide real-time pricing, market analysis, and supplier insights, helping companies optimize their procurement processes. By leveraging these resources, businesses can secure competitive pricing and ensure a reliable supply of TDI.
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