OfBusiness Chemicals Dailies

24th April’23

Price

• Recent developments in the domestic and international markets are affecting the prices of toluene. In the domestic market, traders have lowered toluene prices by Rs.3-4 /kg to Rs.84++ Ex Kandla and Rs.85++ Ex Mumbai on cash payment terms.
• Importers offer toluene at Rs.84.75++ Ex Kandla and Rs.85++ Ex Mumbai on 60 days credit. The decrease in domestic prices can be attributed to a sharp decline in crude oil and FOB Korea toluene prices.
• Meanwhile, retail prices for toluene have also decreased by Rs.3 /kg to Rs.95++ Ex Kandla, Rs.96++ Ex Mumbai, Rs.99.50++ Ex Hyderabad, and Rs.101.50++ Ex Vishakapatnam on cash payment terms.

Demand and Supply

• Despite good seasonal demand from the paints, coatings, and adhesives industries anticipated in April, May, and June, a huge inventory has been built by importers at all ports. However, the demand is less anticipated, as per a market participant.
• According to an importer, traders who had booked inventories at Rs.86-87++ level are now selling at lower prices due to further price crashes. Nevertheless, importers are trying to maintain higher prices as replacement costs are high.
• While demand from pharma, packaging, and inks has improved, bulk buyers are not in a hurry to book inventory as port inventories are high and prices are decreasing. According to a trader, the market operates on a spot and just-in-time delivery basis.

News

• In the international market, upstream crude oil WTI and Brent prices have declined by 1.06$ – 1.25$ to 77.23$/Barrel and 80.94$/Barrel, respectively.
• Feedstock FOB Singapore naphtha prices have fallen 25$ to 640$/Mt, while the Asian benchmark FOB Korea toluene prices fell nearly 55$ to 920$/Mt last week.

OFB’s Opinion

• OFB experts predict that toluene prices will remain mixed this week due to falling feedstock naphtha prices and FOB Korea prices. However, seasonal paint, coatings, and adhesive demand will remain firm until June. Despite this, rising port inventories may cause the toluene market to trend downwards.