OfBusiness Chemicals Dailies

2nd May’23

Price

• The prices of Toluene have decreased in the domestic market due to poor buying interest and lower international prices. In Kandla, the prices fell by Re.1 /kg to Rs.82++ Ex, while in Mumbai, prices fell to Rs.83++ Ex on cash payment terms. As a result, the prices of Toluene fell by almost Rs.5 /kg week on week.
• In the retail market, the prices of Ms. Barrel also fell by Re.1 /kg. In Kandla, the prices were reduced to Rs.94++ Ex, while in Mumbai, they were reduced to Rs.95++ Ex.
• In Hyderabad, the prices were reduced to Rs.98.5++ Ex, and in Vishakapatnam, they were reduced to Rs.99.50++ Ex on cash payment terms.

Demand and Supply

• Suppliers have much inventory in all the ports as importers piled up much inventory in April for downstream seasonal demand.
• Although the seasonal demand for paints and coatings opened late, it started picking up from the last week of April. However, the buyers’ psychology toward Toluene is weak as most bulk buyers and traders believe Toluene prices are expected to crash further and touch the Rs.78-79 /kg level.
• Demand from Pharma, Packaging, and Ink manufacturers has turned to spot buying with reduced procurement quotas due to price correction.

News

• In the international market, upstream WTI Crude oil prices increased by 0.13% to 75.76 $/barrel.
• The feedstock FOB Singapore Naphtha prices fell nearly 25$ to 623$/Mt, while the downstream FOB Korea Toluene prices fell 20$ to 850$/Mt.

OFB’s Opinion

• It is expected that Toluene prices will remain mixed and volatile due to weak international prices, poor buying sentiments, and high port inventories. However, improved seasonal demand from paints, coatings, and adhesive manufacturers can hold prices from crashing.