06 June 2013 08:15 [Source: ICIS news]
SINGAPORE (ICIS)--Indian importers will import less contractual toluene volumes in June for the third straight month, on the back of persistently high local stock levels amid little improvements in the downstream sectors, market players said on Thursday.
About 8,500 tonnes of Singapore-origin cargoes will be moved to India in June, down from the monthly contracted volume of 12,000-15,000 tonnes, buyers said.
“The [Singapore-based] producer is able to use the unsent volumes in its own gasoline pool,” a trader based in Mumbai said.
Only 2,000 tonnes of South Korean parcels will be shipped to India in the same period.
Two traders, who have South Korean term lots to export to India, said they have diverted their cargoes of a total of 8,000 tonnes away, since they received lacklustre response from their Indian buyers.
“This is a good news that even from South Korea less material will go to India,” a Singapore-based trader who exports to India said.
Inventories holding at above 50,000 tonnes across the major ports in India remained the key bearish factor, as compared with the normal level of 20,000 tonnes, traders said.
“Stock levels as though have never come down,” another trader based in Mumbai said.
“Cargoes kept arriving, although we traders are trying hard to offload our stocks,” a third trader based in Mumbai said.
Contractual volumes bound for India have been cut since April this year, as importers in India failed to liquidate their cargoes in the country amid persistent long supply, given the over-committed contractual volumes in 2013 compared with the previous year.
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