28 May 2010 12:18 [Source: ICIS news]
SINGAPORE (ICIS news)--The Indian toluene market is on a downtrend for the second consecutive week as traders have been quickly liquidating cargoes due to a recent fall in regional prices, high stocks in Kandla and weak domestic demand, traders said on Friday.
Ex-tank values in the western Indian ports of Kandla and Mumbai were reported to be at Indian rupees (Rs) 39-40/kg ($0.84-0.86/kg), Rs1.5-2/kg lower than on 21 May, according to global chemical market intelligence service ICIS pricing.
“These prices are the result of panic, [as] two-tier traders are unable to hold the product,” said a key importer in ?xml:namespace>
Stock levels in Kandla had risen in the past few weeks due to high imports, with most traders’ estimates of stocks to be above 20,000 tonnes.
Due to the high stocks, demand in the domestic market was sluggish and buyers were also cautious following the volatility in energy and regional aromatics markets, according to traders.
Spot toluene prices in Asia rose on Friday and were hovering at $755-765/tonne FOB (free on board) Korea, after falling below $700/tonne FOB Korea on 25 May due to weak crude values, according to ICIS pricing.
($1 = Rs46.61)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|