Indian Toluene Prices Expected to Go Down on Slow Demand, Falling Asian Prices – 30 Oct 2014

Toluene prices are set to decline in India from the onset of November 2014, as indicated by falling prices of the aromatic in key Asian markets. The latest export price of Toluene in South Korea has declined remarkably to $946 per metric tonne FOB from that reported at $1,046.50 per metric tonne FOB in the first week of October 2014. Resultantly, bulk prices of the aromatic at Indian ports--Mumbai and Kandla--moved down to Rs 72.5 per kg respectively from Rs 77 a kg respectively, reported at the first week of October 2014.

Demand for the aromatic is also not expected to strengthen significantly as off-takes from the paint industry will go down during the winter season. Traders in the country's markets prefered to maintain less inventory in view of decline in the price as well as demand slowing down.

Toluene producers in the country are thus expected to lower their ex-work prices in the coming days to maintain import price parity.