Toluene Diisocyanate (TDI) Price Trend and Forecast 2026-2027

Market Overview

In Europe, toluene diisocyanate (TDI) prices rose from USD 2.282/KG in Q1 2025 to USD 2.626/KG by Q4 2025, a full-year gain of 15.1%, supported by anti-dumping trade measures and robust polyurethane foam demand across the furniture and automotive sectors. The global four-region average across Europe, North America, Northeast Asia, and Southeast Asia advanced from USD 1.893/KG to USD 2.016/KG, a 6.5% annual increase.

TDI is produced through a multi-step process involving the nitration of toluene, hydrogenation to form toluenediamine, and subsequent phosgenation. The compound is the primary feedstock for flexible polyurethane foam, which absorbs approximately 70% of global TDI demand across the furniture, bedding, and automotive seating sectors. Rigid foam for construction and the coatings, adhesives, sealants, and elastomers segments account for the remaining consumption.

Pricing is shaped by toluene feedstock costs, phosgene process costs, energy pricing in key producing regions, downstream furniture and automotive demand cycles, and the regulatory trade environment in Europe. Chinese capacity expansions have increasingly set the global price floor.

Toluene Diisocyanate (TDI) Price Forecast for 2026

The TDI supply-demand balance for the remainder of 2026 is expected to remain constructive, supported by recovering furniture and construction-sector demand. Producer cost floors are anchored by firming toluene feedstock and energy costs. The primary upside risk is a Chinese production curtailment or accelerated European polyurethane foam demand. The primary downside risk is a global furniture and construction slowdown or accelerated Chinese TDI capacity additions extending the supply surplus.

For the Quarter Ending March 2026

Toluene Diisocyanate (TDI) Prices Q1 2026: 

• Europe: USD 2.513/KG
• North America: USD 1.830/KG
• Northeast Asia: USD 2.126/KG
• Southeast Asia: USD 1.713/KG

Toluene Diisocyanate (TDI) Prices in Europe

European TDI averaged USD 2.513/KG in Q1 2026, a 4.3% pullback from Q4 2025's USD 2.626/KG as the immediate post-holiday demand surge moderated. Toluene feedstock costs held firm, maintaining the production cost floor near Q4 2025 levels. Anti-dumping measures on Asian TDI imports continued to insulate the European market from lower-priced supply. First-quarter furniture and automotive foam procurement remained active as buyers sought to secure volumes ahead of the spring production season.

Why did the price of TDI change in Q1 2026 in Europe?

The 4.3% Q1 2026 decline reflected a seasonal demand moderation from Q4 2025's elevated level. Firm toluene feedstock costs and the ongoing anti-dumping duty regime prevented a sharper correction in the European TDI market.

Toluene Diisocyanate (TDI) Prices in North America

North American TDI averaged USD 1.830/KG in Q1 2026, a 1.9% improvement from Q4 2025. Automotive sector restocking ahead of the spring manufacturing season and improving furniture-sector order flow supported the demand side. Domestic toluene feedstock costs edged upward, gradually firming the production cost floor. Supply remained adequately covered by domestic production and the continuing import trade, keeping the upside contained.

Why did the price of TDI change in Q1 2026 in North America?

Automotive sector restocking and firming toluene feedstock costs supported the 1.9% price improvement. Adequate domestic supply coverage limited the upside relative to European and Northeast Asian markets.

Toluene Diisocyanate (TDI) Prices in Northeast Asia

Northeast Asian TDI averaged USD 2.126/KG in Q1 2026, a 7.5% increase from Q4 2025. Chinese domestic furniture and construction sector demand gained momentum at the start of 2026. Planned maintenance shutdowns at key TDI production units across China and South Korea tightened the regional spot market. Export price offers from Chinese producers firmed, reducing the price differential with European and North American markets.

Why did the price of TDI change in Q1 2026 in Northeast Asia?

Planned production maintenance, recovering Chinese downstream demand, and firming toluene feedstock costs combined to drive the 7.5% Q1 2026 price increase, the strongest quarterly gain in the six-quarter period for the region.

Toluene Diisocyanate (TDI) Prices in Southeast Asia

Southeast Asian TDI averaged USD 1.713/KG in Q1 2026, a 2.9% increase from Q4 2025. The region's import-dependent structure meant that the firming of Northeast Asian export offers translated directly into higher domestic prices. Furniture and foam sector demand across Vietnam, Indonesia, and Thailand improved in the first quarter as production activity picked up. The regional price remained the lowest among the four reporting markets, reflecting import-delivered pricing.

Why did the price of TDI change in Q1 2026 in Southeast Asia?

Firming Northeast Asian TDI export prices and recovering domestic furniture-sector demand drove the 2.9% increase. The region's import dependency means Northeast Asian price movements transmit directly into Southeast Asian market levels.

For the Quarter Ending December 2025

TDI Prices Q4 2025: 

• Europe: USD 2.626/KG
• North America: USD 1.796/KG
• Northeast Asia: USD 1.978/KG
• Southeast Asia: USD 1.664/KG

Toluene Diisocyanate (TDI) Prices in Europe

European TDI reached USD 2.626/KG in Q4 2025, a 6.7% increase from Q3 and the highest quarterly price of the year. Pre-winter restocking of flexible polyurethane foam by furniture and bedding producers drove elevated procurement activity. Anti-dumping duties on Asian TDI imports continued to support the regional premium, while toluene feedstock costs in Q4 were broadly stable. Supply tightness driven by the trade protection measures and strong seasonal demand pushed prices to their 2025 peak.

Why did the price of TDI change in Q4 2025 in Europe?

Pre-winter polyurethane foam restocking and anti-dumping trade protection drove Q4 2025's 6.7% price increase. Supply insulation from Asian competition maintained the regional price at the highest level among all four reporting regions.

Toluene Diisocyanate (TDI) Prices in North America

North American TDI averaged USD 1.796/KG in Q4 2025, a 3.9% recovery from Q3's USD 1.729/KG. Furniture and bedding sector procurement improved following weaker Q3 demand. Domestic TDI producers maintained output discipline, preventing the oversupply conditions seen in Q3. Import availability from Northeast Asia provided a price cap, limiting the recovery below European levels. The year-end automotive inventory build contributed modestly to demand.

Why did the price of TDI change in Q4 2025 in North America?

Recovering furniture sector procurement and improved domestic supply discipline drove the 3.9% Q4 2025 price recovery. Import price competition from Northeast Asia capped the upside and maintained North American prices significantly below the European market level.

Toluene Diisocyanate (TDI) Prices in Northeast Asia

Northeast Asian TDI averaged USD 1.978/KG in Q4 2025, broadly stable relative to Q3's strong recovery quarter (+0.8%). Chinese furniture and construction sector demand maintained a firm pace through year-end. TDI producer operating rates remained elevated following the previous quarter's capacity restart completions. The narrowing spread between Chinese domestic and export prices reflected the strengthening domestic demand base. South Korean export volumes added modest competitive pressure on spot pricing.

Why did the price of TDI change in Q4 2025 in Northeast Asia?

Stable domestic demand and consistent Chinese producer operating rates maintained pricing near Q3 levels. The narrowing domestic-export price spread reflected improved domestic demand fundamentals in the Northeast Asian TDI market.

Toluene Diisocyanate (TDI) Prices in Southeast Asia

Southeast Asian TDI averaged USD 1.664/KG in Q4 2025, a 3.0% increase from Q3. End-of-year furniture export orders from Vietnam and Indonesia supported import demand for TDI. The firming of the Northeast Asian export price benchmark transmitted into the regional market. Domestic processing industries in Vietnam and Thailand maintained active procurement, and the absence of significant supply disruptions kept the market orderly through year-end.

Why did the price of TDI change in Q4 2025 in Southeast Asia?

End-of-year furniture export production in Vietnam and Indonesia sustained import demand, while firming Northeast Asian export prices directly set the regional benchmark, driving Q4 2025's 3.0% increase.

Quarterly Toluene Diisocyanate (TDI) Price Trends

TDI prices showed a generally rising trend over the six-quarter period. The global four-region average advanced from USD 1.893/KG in Q1 2025 to USD 2.046/KG by Q1 2026, a cumulative 8.1% gain. A Q2 2025 softening of 0.5% gave way to progressive quarterly increases through Q3, Q4 2025, and Q1 2026. Europe maintained the largest premium, while Southeast Asia remained the lowest-priced market throughout.

What was Toluene Diisocyanate (TDI) Price in 2025?

TDI prices followed a broadly rising trajectory in 2025 after a Q2 soft patch. The global four-region average advanced from USD 1.893/KG in Q1 to USD 2.016/KG in Q4, a 6.5% full-year gain. Q2's dip of 0.5% reflected weaker Chinese demand and excess supply. Recovery from Q3 was driven by tightening Northeast Asian capacity, recovering furniture and automotive demand, and sustained anti-dumping protection in Europe.

Toluene Diisocyanate (TDI) Prices in Europe in 2025

European TDI opened Q1 2025 at USD 2.282/KG and reached USD 2.626/KG by Q4 2025, a full-year increase of 15.1% - the steepest annual gain among the four regions. Anti-dumping measures on Asian TDI imports provided structural price support throughout. Q2 rose 5.1% as the furniture and bedding production season gained momentum. Q3 and Q4 extended gains as seasonal demand, combined with stable toluene feedstock costs, maintained upward pressure. Europe traded at a significant premium over all other regions.

Toluene Diisocyanate (TDI) Prices in North America in 2025

North American TDI declined from USD 1.843/KG in Q1 2025 to USD 1.796/KG in Q4 2025, a modest 2.6% full-year contraction. Q2 saw a 4.4% uptick on spring furniture demand, but Q3 fell sharply (-10.1%) as manufacturing output disappointed and Northeast Asian import competition intensified. Q4 recovered 3.9%. Import price benchmarks from Northeast Asia and domestic toluene feedstock costs drove the market throughout 2025.

Toluene Diisocyanate (TDI) Prices in Northeast Asia in 2025

Northeast Asian TDI rose from USD 1.770/KG in Q1 2025 to USD 1.978/KG by Q4, an annual increase of 11.7%. A Q2 dip of 8.4% reflected weak Chinese downstream demand and high operating rates. The Q3 rebound of 21.0% - the sharpest quarterly move in the dataset - reflected planned maintenance curtailments at key Chinese units and a sharp recovery in furniture and construction demand. Q4 held near Q3 levels as the export market tightened.

Toluene Diisocyanate (TDI) Prices in Southeast Asia in 2025

Southeast Asian TDI was broadly stable over 2025, declining marginally from USD 1.676/KG in Q1 to USD 1.664/KG in Q4, a 0.7% contraction. The region's import-dependent structure meant that the Q2 Northeast Asian export price softening transmitted directly into lower Southeast Asian prices. The subsequent regional recovery from Q3 onward mirrored the Northeast Asian price rebound as Vietnamese and Indonesian furniture manufacturers ramped up procurement to serve export order books. Southeast Asia maintained the lowest regional price level throughout 2025.

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Expert Market Research delivers continuous TDI price tracking across all major producing and consuming regions, tracing causation through toluene feedstock economics, phosgene process costs, anti-dumping trade enforcement, seasonal furniture and automotive demand, and Chinese capacity discipline. Forecasts draw on feedstock economics, trade flow data, and capacity utilisation across all reporting regions. Contact Expert Market Research today for TDI pricing data, bespoke market analysis, and strategic procurement advisory.