Hungary's Borsodchem confirmed Thursday that the construction of its new 160,000 mt/year toluene di-isocyanate (TDI) plant in Kazincbarcika, Hungary, is proceeding as scheduled.
It added in a statement that "the commissioning [of the plant] is expected to start early June 2011 and the plant will be ready for start early Q3 2011."
Borsodchem also said that they were "in the process of reviewing the operation of its smaller TDI plant at the same location" and was "considering temporarily idling the facility."
The company blamed "unfavorable raw material cost evolution" for this, adding that this "had and [is] expected to depress margins on TDI substantially in the foreseeable future."
The main TDI feedstock is TDI-grade toluene, which has risen by $286/mt compared with April 2010 price levels.
Toluene was heard offered at above $1,200/mt for 1,000 mt FOB Rotterdam TDI barges Wednesday, with one producer saying "it makes no sense to offer lower" given US Gulf Coast prices of 418 cents/gallon ($1,271/mt).
