Surge in TDI Prices in Asia Driven by Rising Operational and Regulatory Costs

BASF’s announcement of a USD 200 per metric tonne increase for Lupranate® TDI across ASEAN and South Asia reflects the broader upward pressure on TDI pricing in the region, driven primarily by escalating transportation and energy costs. Freight rates in Asia have surged due to ongoing logistics disruptions, higher fuel prices, and reduced vessel availability, significantly raising the cost of moving raw materials and finished isocyanates.

Simultaneously, energy prices remain elevated, particularly in key production hubs, increasing the operational expenditure associated with TDI manufacturing. Moreover, tightening regulatory frameworks across Asia — including stricter environmental compliance requirements and enhanced safety standards — have added further cost burdens for producers.

These combined factors have strained margins across the supply chain, making price adjustments necessary to maintain reliable supply and ensure continued adherence to regulatory and sustainability obligations.

Source: BASF