If you work anywhere near flexible foam, furniture, automotive, bedding, coatings, adhesives, or insulation manufacturing, you likely noticed the market tightening this spring. The Toluene Diisocyanate Price Trend stayed firmly on an upward path through most of the second quarter of 2026, supported by supply disruptions tied to the conflict between Iran and the USA, before a fairly widespread correction set in during June. For anyone tracking Toluene Diisocyanate Prices across China, the USA, South Korea, Saudi Arabia, Germany, Italy, Turkey, and India, Q2 2026 was a quarter that rewarded close attention, since the market moved firmly in one direction for most of the period before shifting rather suddenly.

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What Shaped the Quarter Overall

Before getting into individual markets, it helps to look at the bigger forces at work. The conflict between Iran and the USA disrupted international trade flows and tightened product availability across nearly every major region tracked here. That disruption did not act alone, either — rising toluene feedstock prices pushed manufacturing costs higher at the same time, adding a second layer of pressure on top of the supply-side tightness.

Suppliers responded with disciplined pricing rather than aggressive discounting, and inventories stayed fairly balanced through most of the quarter. Freight costs climbed as well, adding further weight to overall market costs. Meanwhile, demand held up strongly across the usual downstream applications — flexible polyurethane foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation industries all kept buying at a steady pace, which gave suppliers little reason to soften their offers. Together, these forces kept the Toluene Diisocyanate Price Chart pointed upward through most of April and May, and the Toluene Diisocyanate Price Index reflected genuinely firm market conditions for the bulk of the quarter, resting on constrained supply, higher feedstock costs, and healthy downstream demand.

China: The Market Setting the Tone for Asia

China's export market, priced FOB Shanghai, stayed firm through most of the quarter, supported by the same supply disruptions tied to the Iran–USA conflict that affected export logistics and tightened availability more broadly. Rising toluene feedstock prices pushed manufacturing costs higher, while disciplined supplier pricing and steady demand from flexible polyurethane foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation industries kept sentiment positive throughout April and May.

June, however, brought a sharp reversal. Prices in China fell by around 10.5% as feedstock costs softened, product availability improved, and buyer procurement slowed down, which encouraged suppliers to start offering discounts. This late-quarter correction is a notable feature of the overall Toluene Diisocyanate Price Trend in China during Q2 2026, and it shows up clearly when looking at how the market moved from firm strength early on to a meaningful pullback by the end of the quarter.

United States: A Firm Quarter with a Gentler Correction

In the US market, priced FOB Texas, prices also remained firm through most of the quarter, supported by the same global supply disruptions linked to the Iran–USA conflict, which tightened raw material availability and affected broader trade flows. Rising toluene feedstock costs pushed up production expenses, while disciplined supplier pricing and steady downstream demand from foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation applications reinforced the positive momentum.

Unlike some of the sharper corrections seen elsewhere, the US market's June pullback was comparatively mild — prices declined by around 2% as feedstock costs eased, availability improved, and buyer procurement slowed somewhat, prompting modest supplier discounts. Even with that late-quarter adjustment, the Toluene Diisocyanate Prices recorded in the US for Q2 2026 still reflected a quarter of genuine strength overall.

South Korea: A Strong Rally Followed by a Sharp Pullback

South Korea's export market, priced FOB Busan, followed a similar pattern to China, staying firm through most of the quarter as supply disruptions tied to the Iran–USA conflict affected export logistics and tightened product availability across the region. Rising feedstock costs and steady demand from the familiar mix of downstream industries — foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation — kept sentiment positive through April and May.

June brought one of the sharpest corrections recorded in this quarter, with prices in South Korea falling by around 13% as feedstock costs softened, export availability improved, and buyer procurement slowed considerably, encouraging suppliers to move on price. This swing from firm strength to a steep decline makes South Korea one of the more volatile markets covered in this quarter's overall Toluene Diisocyanate Price Trend.

Saudi Arabia: Steady Strength with a Moderate Correction

Saudi Arabia's export market, priced FOB Al Jubail, remained firm through most of the quarter, supported by the same regional trade disruptions tied to the Iran–USA conflict, which tightened product availability across the Middle East. Rising toluene feedstock costs increased production expenses, while disciplined supplier pricing and steady demand from downstream applications kept the market on solid footing.

In June, prices eased by around 8% as feedstock costs softened and product availability improved, with slower buyer procurement prompting suppliers to offer discounts. That correction places Saudi Arabia somewhere in the middle of the pack this quarter — a meaningful pullback, but not as sharp as what was seen in South Korea or China.

Germany: A Stable European Market with a Minimal Adjustment

Germany's export market, priced FOB Hamburg, stayed notably stable through most of the quarter. Supply interruptions linked to the Iran–USA conflict still affected regional trade dynamics and constrained availability across the European market, and rising toluene feedstock costs still pushed production expenses higher, but controlled supplier pricing and steady demand from foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation sectors kept the market on an even keel.

By June, the correction here was the smallest recorded in this quarter's dataset, with prices easing by only about 0.5% as feedstock expenses eased slightly and buyer purchasing slowed modestly. Germany's steadiness through the quarter stands out compared to the sharper swings seen in some of the Asian markets.

Italy: Tracking Germany's Lead

Italy's market, priced FD Trieste, stayed stable for most of the quarter as well, closely tracking the rising trend coming out of Germany's FOB market, which supported higher import proposals and reinforced confidence among Italian buyers. Rising toluene feedstock costs pushed up upstream production expenses, but controlled supplier pricing, consistent inventories, and steady demand from the usual range of downstream sectors kept procurement activity moving through the quarter.

In June, Italy's correction mirrored Germany's almost exactly, with prices falling by about 0.5% as feedstock costs decreased, product availability improved, and buyer purchasing slowed. The close relationship between Italy and Germany's pricing patterns reflects how tightly linked these two European markets are within the broader European Toluene Diisocyanate trade.

Turkey: Following South Korea's Lead, With a Matching Correction

Turkey's market, priced CIF Mersin on material sourced from Busan, stayed stable for most of the quarter, closely tracking the rising trend out of South Korea's FOB market, which supported higher import proposals and boosted optimistic sentiment among Turkish buyers. Rising feedstock prices raised upstream production expenses, but controlled supplier pricing and steady import availability kept procurement efforts on track through the quarter.

Turkey's June correction closely mirrored South Korea's, with prices falling by around 13% as feedstock costs decreased, import availability improved, and buyer purchasing slowed considerably. That parallel movement underlines just how closely Turkey's import pricing tracks conditions in its main South Korean supply market.

India: Following China's Lead, With a Similarly Sharp Correction

India's market, priced CIF JNPT on material sourced from China, stayed stable throughout most of the quarter, paralleling the rising trend out of China's FOB market, which supported higher import proposals and strengthened favorable sentiment domestically. Rising feedstock prices increased upstream production expenses, but disciplined supplier pricing and steady import availability kept procurement activity strong through the quarter, supported by consistent demand from foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation applications.

In June, India's correction came in at around 13%, as easing feedstock costs, improved import availability, and reduced buyer activity led suppliers to extend discounts. This closely mirrors the pattern seen in China, reinforcing just how directly India's import pricing follows movements in its primary Chinese supply market.

Reading the Pattern Across Eight Markets

Looking at these eight markets together, a clear structure emerges. Nearly every region experienced the same underlying story: firm, supply-driven strength through April and May, tied to disruptions from the Iran–USA conflict and rising feedstock costs, followed by a correction in June as feedstock costs eased and buyers grew more cautious. What varied significantly was the size of that June correction. Markets like Germany and Italy, tightly linked to each other, saw only marginal adjustments of about 0.5%, while South Korea, Turkey, China, and India all saw much sharper pullbacks in the 10% to 13% range. The US and Saudi Arabia landed somewhere in between, with moderate corrections of 2% and 8% respectively.

This pattern also highlights how closely linked certain import markets are to their primary export sources. Turkey's pricing tracked South Korea almost exactly, both in direction and in the size of the June correction, while India mirrored China in much the same way. That tight coupling is worth keeping in mind for anyone trying to anticipate how these import markets might behave going forward, since movements in the major export hubs tend to show up in these downstream markets with only a short delay.

What This Means Heading Into Q3

The scale of the June correction across so many markets raises an important question for the months ahead: was this a one-time reset after an unusually strong first two months of the quarter, or the start of a longer softening phase? Given that demand from flexible polyurethane foam, furniture, automotive, bedding, coatings, adhesives, sealants, and insulation industries stayed healthy throughout Q2 and did not show signs of genuine weakness, it seems more likely that this was largely a supply-side normalization rather than a demand-driven downturn. Still, with feedstock costs and geopolitical conditions both capable of shifting quickly, buyers and sellers alike will want to watch closely how the Toluene Diisocyanate Price Index develops through the early part of Q3.

About Price Watch™

Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.

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