Indian domestic toluene up 11% in six months on short supply

22 August 2012 09:59  [Source: ICIS news]

SINGAPORE (ICIS)--India’s domestic toluene prices have risen by nearly 11% on Wednesday from March this year on the back of tight prompt supply of cargoes brought about by delays in shipments at the Kandla and Mumbai ports, market sources said on Wednesday.

Domestic toluene prices have risen to Rs74.50-75.50/kg (Rs74,500-75,500/tonne) ($1,343-1,361/tonne) ex-tank from Rs67.00-67.50/kg ex-tank on 20 March when ICIS first started tracking domestic Indian prices.

The price hike is not due to actual demand but caused by supply issues, market sources said.

“Buying sentiment has been impacted because of the high [domestic toluene] prices. Import prices [on a CFR India basis] are high as well, so people are buying around half the volumes of what they usually buy. It’s cautious buying,” a local distributor said.

However, market players said that the price hike is not expected to last long as the arrival of shipments, tentatively estimated at 27-28 August, will alleviate the pressure of tight prompt supply.

Prices may soften when more cargoes come in, they added.

“Some deals have already been concluded at Rs73.00-73.50/kg ex-tank for cargoes arriving at the end of the month [August],” said one of the market sources.

($1 = Rs55.47)

By: Jasmine Khoo
+65 6780 4359

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