Booking prices for Toluene from Korea approximately dropped by $20 per tonne to levels of $1,085 per tonne FOB, within the past 2 days. The demand for Toluene has more or less been stable in India, given the widespread application of the aromatic, while the market price has been trading at lower levels since the beginning of the month. Indianpetrochem reviewed the current market situation and spoke to some traders who shed light on this matter.
Korean FOB prices for Toluene has been bearish since the beginning of this year backed on weak Benzene prices in the region. To add to this, the current sharp decline in the price of the aromatic in Asian region has been linked to the fall in HSBC Purchasing managers Index (PMI) for China's manufacturing industry, which dropped to seven month low of 48.3 for the month of February. However, analyst in the international market warned against reading too much into the report, citing reasons that the factory output in China was affected by the Lunar New Year Festival during the month of February.
In line with the current international trend for Toluene, some Indian manufacturers revised their list price to lower levels. On 13th February, 2014, BPCL revise the ex-factory basic price for the aromatic from Rs. 77 a kg to Rs.75 a kg, this is much lower than the revised list price for the aromatic at Rs. 78 a kg in the month of January.
In the Mumbai market, Toluene sells within the range of Rs. 81-82 per litre (sold barrels). The bulk port price for the aromatic at Mumbai and Kandla port are at Rs. 76 per kg (purchasing in tonne), basic price. Despite the international bearish trend for the aromatic, the domestic price for Toluene isn’t going to drop significantly in the foreseeable future due to the strong demand for the solvent throughout out the year.
A trader told the website, “Toluene is currently underpriced in the Indian market, given the strong demand conditions for the aromatic in the country, these prices aren’t expected to fall to much lower level in the future despite international market trends”.
By Ntasha Berry
ntasha.berry@indianpetro.com
Korean FOB prices for Toluene has been bearish since the beginning of this year backed on weak Benzene prices in the region. To add to this, the current sharp decline in the price of the aromatic in Asian region has been linked to the fall in HSBC Purchasing managers Index (PMI) for China's manufacturing industry, which dropped to seven month low of 48.3 for the month of February. However, analyst in the international market warned against reading too much into the report, citing reasons that the factory output in China was affected by the Lunar New Year Festival during the month of February.
In line with the current international trend for Toluene, some Indian manufacturers revised their list price to lower levels. On 13th February, 2014, BPCL revise the ex-factory basic price for the aromatic from Rs. 77 a kg to Rs.75 a kg, this is much lower than the revised list price for the aromatic at Rs. 78 a kg in the month of January.
In the Mumbai market, Toluene sells within the range of Rs. 81-82 per litre (sold barrels). The bulk port price for the aromatic at Mumbai and Kandla port are at Rs. 76 per kg (purchasing in tonne), basic price. Despite the international bearish trend for the aromatic, the domestic price for Toluene isn’t going to drop significantly in the foreseeable future due to the strong demand for the solvent throughout out the year.
A trader told the website, “Toluene is currently underpriced in the Indian market, given the strong demand conditions for the aromatic in the country, these prices aren’t expected to fall to much lower level in the future despite international market trends”.
By Ntasha Berry
ntasha.berry@indianpetro.com
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