Crude oil slid to four year low on Brent at $82.34 a barrel yesterday, the lowest since October 2010. Any correction of prices is not expected unless OPEC breaks its silence. Fickle crude is putting aromatics and their derivatives under a lot of pressure. Last week when OPEC cut the demand forecasts for its crude, aromatics in Asian markets came under a lot of pressure. From the June 2014 peak of $1,420 a tonne, the price of benzene (Korea) fell by over 27 percent to $1,035 a tonne. Though far east Asian market showed some recovery yesterday.
Aromatics (Benzene, Toluene & Xylene) price are slipping down in the Indian domestic market. India typically sees 20,000-25,000 tonnes/ month of combined spot and contract toluene imports but this volume is being expected to increase in the month of November,2014. Adding to this, the tumbling crude values also triggers the pressure on prices of Toluene. Demand of Toluene is also under pressure amid an array of challenging market conditions and limited availability of credit in a tough economic environment.
The fall in crude prices also contributed to current sentiment in the Indian market. Domestic toluene and benzene supplies are going to improve in November and exert further pressure on prices. Reliance Industries Limited (RIL) - a local major aromatics producer has restarted its Hazira-based aromatics facility on 7th November after a month long scheduled turnaround at the unit. RIL's plant can produce 210,000 tonnes/year of benzene and 100,000 tonnes/year of toluene.
Last quote of Toluene in Mumbai market was in the trading range of Rs. 66 per kg.
(This article was published on the website on November 11, 2014)
Aromatics (Benzene, Toluene & Xylene) price are slipping down in the Indian domestic market. India typically sees 20,000-25,000 tonnes/ month of combined spot and contract toluene imports but this volume is being expected to increase in the month of November,2014. Adding to this, the tumbling crude values also triggers the pressure on prices of Toluene. Demand of Toluene is also under pressure amid an array of challenging market conditions and limited availability of credit in a tough economic environment.
The fall in crude prices also contributed to current sentiment in the Indian market. Domestic toluene and benzene supplies are going to improve in November and exert further pressure on prices. Reliance Industries Limited (RIL) - a local major aromatics producer has restarted its Hazira-based aromatics facility on 7th November after a month long scheduled turnaround at the unit. RIL's plant can produce 210,000 tonnes/year of benzene and 100,000 tonnes/year of toluene.
Last quote of Toluene in Mumbai market was in the trading range of Rs. 66 per kg.
(This article was published on the website on November 11, 2014)
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