According to the data from the business associations’list, the overall price of toluene in China increased this week. At the beginning of the week, the average price of toluene was 5,403 yuan/ton, while on Friday, the average price of toluene was 5,498 yuan/ton, with a weekly increase of 1.74%.
II. Analytical Review
1. Upstream: IEA said the pace of global crude oil demand may slow down. Russia said it had the ability to increase production to ease the supply contraction caused by geographical situation such as Venezuela. International oil prices rose steadily, with spot Brent between $70.82 and $71.585 per barrel. Crude oil outside high support, toluene prices all the way up.
2. Market: FOB Korean toluene reference price also rose from $689 per ton at the beginning of the week to $703 per ton (closing on Friday), while import reference price in East China remained stable at around $708 per ton. Since Tuesday, the toluene price of Sinopec’s subsidiary has been raised by 100 yuan per ton.
3. Downstream: The port is well stocked, and the inventory in East China is around 73,000 tons. The demand of downstream distributors is not high, the market atmosphere was once cold and the wait-and-see atmosphere was strong.
3. Future Market Forecast
The toluene analyst of Business Society Chemical Branch thinks that in the near future, the toluene plant of large factories has entered the period of overhaul one after another, the output has decreased slightly, the international crude oil market is more ideal, while the toluene market is more stable and the market turnover is general, so it is expected that the toluene price will be more stable in the near future.