Price of Toulene dips in New Delhi despite strong demand – 6 Jan 2014

The demand for Toluene remained more or less stable during the month of November and December last year, where the aromatic was being sold for Rs. 90 per kg in New Delhi. However, the prices dipped by Rs. 3 per kg at the beginning of this month despite strong demand for the aromatic in the national capital.

This market trend is contrary to the company trend followed by Reliance for Toluene, whereby the company increased the list price by Rs. 2 per kg to Rs. 78 per kg on 2nd January, 2014. On the other hand, Hardilia hasn't revised its list price for the petrochemical. On this note, a trader told Indianpetrochem , "Its  speculated that Reliance increased its toluene price because of limited stock availability". The further added, "The traders in New Delhi are immune to this price rise as most sellers in the market have bought stocks from Herdilia, which hasn't revised its price based on the current market conditions"

On the other had , some other traders contemplate that Reliance increased its price due to high feedstock price and the same upswing isn't reflected in the market due to ample inventory in the New Delhi market.

Currently, the aromatic sells for Rs. 87 per kg in New Delhi.

Toluene is a key aromatic with a wide range of applications, it is used for making solvents used in paints, thinners and coating. In India, Toluene is primarily used as a solvent with a demand share of 55-60 %, based on market sources.