OfBusiness Chemicals Dailies

26th April’23

Price

• The price of domestic Toluene has decreased in line with international prices. Traders have reduced Toluene prices by Rs.1.5 /kg to Rs.83++ Ex Kandla and Rs. 84++ Ex Mumbai for cash payments.
• High port inventories and lower international prices have caused Toluene prices to fall. Importers are offering prices of Rs.83.50++ Ex Kandla and Rs.84.50++ Ex Mumbai with a 60-day credit term.
• Domestic manufacturer BPCL lowered its Toluene price by Rs.1 /kg to Rs.82++ Ex Kochi.
• In the retail market, barrel prices have decreased by Rs.1 /kg to Rs.94++ Ex Kandla, Rs.95++Ex Mumbai, Rs.99++ Ex Hyderabad, and Rs.101 ++ Ex Vishakapatnam for cash payments.

Demand and Supply

• Stocks at all ports are high, and inventories are increasing. However, demand for Toluene from the paints and coatings industry needs to be stronger due to the seasonal demand not picking up, as buyers are holding off on purchases due to higher prices.
• Demand from the pharma and packaging industries has improved from last week. Still, most buyers are working on a spot basis due to falling domestic and international prices.
• Traders are liquidating at different rates due to further price crash fears, but imports are resistant to selling at lower prices as the replacement cost is above Rs.85 /kg.

News

• In international markets, the WTI crude oil benchmark price increased by 1.48$ to 78.74 $/barrel, and Brent prices increased by 1.66$ to 82.70 $/barrel.
• Feedstock FOB Singapore Naphtha prices have also increased by 15$ to 655 $/Mt. Asian Benchmark FOB Korea Toluene prices have decreased by 35$ to 885$/Mt, and CFR South East Asia prices have decreased by 40$ to 960$/Mt.

OFB’s Opinion

• It is anticipated that Toluene prices in domestic and international markets will remain mixed and volatile due to high port inventories and thin buying interest. However, downstream seasonal demand is expected to pick up next week, which could stabilize the prices.