Dublin -- Global revenue in the TDI (toluene diisocyanate) business is expected to reach $8 billion in 2016 with an estimated growth rate (CAGR) of 5.5 percent from 2011 to 2016, according to a new study from the Research and Markets group (www.researchandmarkets.com/research/c3011ccb/toluene_diisocyana)
R&M says positive volume growth is expected in the global TDI market at a CAGR (combined annualised growth rate) of 4.8 percent from 2011 to 2016 due to the rise in demand from developing economies such as India and China in Asia Pacific.
TDI is mostly used to make flexible polyurethane foams, primarily used as cushioning material in furniture and transportation applications. It is used in beds and car seats and to some extent in manufacturing rigid foams, coatings, adhesives &sealants, and elastomers.
R&M says that flexible PU foams, the largest TDI application, accounted for 85.2 percent of market revenue in 2011. Flexible foam is expected to grow with a CAGR of 5.6 percent during 2011 - 2016, according to R&M.
Asia Pacific is the fastest growing market, expected to reach $3billion in 2016 with a CAGR of 6.8 percent during 2011 - 2016, reaching a volume share of 39 percent of the global TDI market in 2016.
According to R&M, continuous rises in TDI bulk prices have been observed since January 2009 following rises in feedstock costs (toluene) and crude oil prices.
[UTI has not seen the full report and so cannot comment on its content.]