Toluene is one of the most heavily traded aromatics amongst traders in the Indian market. Most traders in India are taking a "long position" on the aromatic, as there are definite expectation that all aromatic prices will eventually gain weight due to high upstream cost caused by the political insurgency in Iraq. This review surveys the market sentiment for Toluene across various trading hubs in Indian.
The website gathers from various traders across different trading hubs in India that the demand for Toluene hasn't moved as much as the prices have moved in recent weeks.
"The demand for Toluene from major end-user industries such as paint, packaging and ink industries have remained unchanged", a Delhi based trader informed the website.
At present, the bulk prices of Toluene Ex- Kandla and Ex- Mumbai are Rs. 75 per kg and Rs. 76 per kg, respectively. During May, the average price of Toluene was Rs. 72- 73 per kg at Kandla and Mumbai.
Rising Crude Oil prices has negatively impacted the Indian rupee, which to some extent has escalated Toluene prices within the country. Its observed that the benchmark FOB price for Toluene in South Korea has steadily been increasing from $1,090 per metric tonne to current level of $1,136 per metric tonne, over the past few weeks. Increasing benchmark prices has prompted traders to take a long position on Toluene. Some might even call it "fear purchasing", as there is a strong expecting that the price of the aromatic is set to rise in the near future.
"In July, there is a general expectation that the price of Toluene gains momentum. This along with recent global developments has urged traders to take a buy position on Toluene, as its the most heavily traded aromatic in the country. Traders who have taken a hit in their margins in the past are trying to hedge future margins by making strong purchases at current prices", a prominent importer informed the website.
Taking advantage of current momentum, RIL hiked the price of the aromatic by Rs. 2 per kg to Rs. 71.5 per kg on 16th June, 2014.
Overall, there is a market expectation that the price of Toluene is set to remain stable at the current trading range in the near future.
Note:- All prices are exclusive of all taxes
The website gathers from various traders across different trading hubs in India that the demand for Toluene hasn't moved as much as the prices have moved in recent weeks.
"The demand for Toluene from major end-user industries such as paint, packaging and ink industries have remained unchanged", a Delhi based trader informed the website.
At present, the bulk prices of Toluene Ex- Kandla and Ex- Mumbai are Rs. 75 per kg and Rs. 76 per kg, respectively. During May, the average price of Toluene was Rs. 72- 73 per kg at Kandla and Mumbai.
Rising Crude Oil prices has negatively impacted the Indian rupee, which to some extent has escalated Toluene prices within the country. Its observed that the benchmark FOB price for Toluene in South Korea has steadily been increasing from $1,090 per metric tonne to current level of $1,136 per metric tonne, over the past few weeks. Increasing benchmark prices has prompted traders to take a long position on Toluene. Some might even call it "fear purchasing", as there is a strong expecting that the price of the aromatic is set to rise in the near future.
"In July, there is a general expectation that the price of Toluene gains momentum. This along with recent global developments has urged traders to take a buy position on Toluene, as its the most heavily traded aromatic in the country. Traders who have taken a hit in their margins in the past are trying to hedge future margins by making strong purchases at current prices", a prominent importer informed the website.
Taking advantage of current momentum, RIL hiked the price of the aromatic by Rs. 2 per kg to Rs. 71.5 per kg on 16th June, 2014.
Overall, there is a market expectation that the price of Toluene is set to remain stable at the current trading range in the near future.
Note:- All prices are exclusive of all taxes
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