OfBusiness Chemicals Dailies

17th April’23

Price

• The prices of domestic Toluene have fallen after two weeks of continuous increase. In the domestic market, importers have decreased Toluene prices in all ports due to buyer resistance to higher prices after a two-week rally.
• Today, Ex-Mumbai prices fell by Re.1 /kg to Rs.86.25++, and Ex-Kandla prices fell by Rs.0.50 /kg to Rs.86.00++ on cash payment terms. Traders’ offer prices were Rs.87.25++ Ex-Mumbai and Rs.87.00++ Ex-Kandla on 60 days payment terms.
• Retail barrel prices decreased by Re.1 to Rs.98++ Ex-Mumbai, Rs.97.75++ Ex-Kandla, Rs.99++ Ex-Hyderabad, and Rs.101++ Ex-Vishakapatnam.
• Domestic Manufacturer BPCL reduced its Toluene price by Re.1 /kg to Rs.82++ Ex-Kochi, and the other manufacturer, Reliance Industries’ Toluene prices, remain the same at Rs.82++ Ex-Hazira.

Demand and Supply

• Supply remains firm from both imports and manufacturers. Demand has also improved from all significant consumers, such as Pharma, Packaging, Paints, Coatings, Inks, and Adhesives, as seasonal demand started in April 2023.
• The demand is likely to be firm until June 2023. Major traders who covered inventory at Rs.79-80++ levels are liquidating aggressively with different prices as buyers started showing less interest in purchasing, as buyers already bought at higher rates of Rs.6-7.

News

• In the international market, Crude oil US benchmark WTI prices increased by 0.05% to 82.52$/Barrel.
• Feedstock FOB Singapore Naphtha prices surged 15$ to 699$/Mt. Toluene Asian benchmark FOB Korea prices rose by 10$ to 950$/Mt last Friday.

OFB’s Opinion

• OFB experts predict that Domestic Toluene prices will be highly volatile this week on bullish international prices and good seasonal demand. However, higher price resistance from buyers is likely to keep some price revisions.