India toluene hits three-month low on strong rupee, high stocks

21 January 2013 09:16  [Source: ICIS news]

SINGAPORE (ICIS)--Spot toluene prices in India’s open domestic market hit a three-month low on Monday, undermined by the appreciation of the Indian rupee and high inventory of the material at major ports, market sources said.

On Monday morning, most trades for imported toluene were settled at Rs77.50/kg ($1,442/tonne) ex-tank at Kandla and Mumbai, down by Rs1.50-2.00/kg from the closing price on 18 January.

Most local sellers, however, stood by their offers of Rs78.00/kg, market sources said.

Toluene inventory at major ports are currently on the high side at above 15,000 tonnes, which is about 50% higher than the record high set in 2012.

“Now, [the] rupee is below Rs54 against the US dollar. This is weighing on buying ideas,” a Mumbai-based trader said.

Another trader in Mumbai was baffled about the weakness in the Indian domestic toluene market when regional prices have started to move up.

“This is surprising actually – that the [domestic] market is falling,” the second trader said.

In Asia, spot toluene prices were discussed at $1,320-1,330/tonne (€990-998/tonne) FOB (free on board) Korea for March shipments at midday, up by $10/tonne from 18 January, according to ICIS.

($1 = €0.75 / $1 = Rs53.75)

Author: Ong Sheau Ling

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