05 July 2013 03:55 [Source: ICIS news]
SINGAPORE (ICIS)--Spot domestic toluene prices in India hit a three-week high, buoyed by the return of buyers amid declining stock levels, market players said late on Thursday.
Prices in Kandla and Mumbai stood at rupees (Rs) 69.50-70.50/kg ex-tank at the close of trade on 4 July, gaining Rs0.75/kg from the start of the week, according to ICIS.
In the second half of June, prices were hovering at the low-Rs69/kg ex-tank levels.
“Inventories have fallen to about 40,000-45,000 tonnes [across India],” a Mumbai-based trader said, adding that two weeks ago, the inventory was at around 50,000 tonnes.
“Appreciation in rupee currency early this week was also one of the price booster,” another trader based in Mumbai said.
The Indian rupee is currently trading at around Rs60 to the US dollar.
“Prices fell late last week, because of depreciation in currency and local producers’ cut in list prices,” a Singapore-based trader said.
Local producers such as Reliance Industries limited (RIL) and Bharat Petroleum Corp Ltd (BPCL) cut their list prices by Rs1.50-1.80/kg to Rs68.50-69.00/kg ex-works, with effect from 1 July, market players said.
However, prices in the Indian domestic market are likely to be weighed down in the near term, with more import arrivals coming from Singapore, South Korea and Europe, they said.
About 2,000 tonnes of European cargoes will reach India in July, while around 8,000 tonnes of Singapore origins were loaded in end-June and close to 6,000 tonnes of Singapore lots will be dispatched in mid-July. These are in addition to 2,000 tonnes of South Korean cargoes heading to India in July, they said.
“June imports from Singapore is only 6,000 tonnes, and from South Korea is near negligible. But [the] situation in July will be different,” a third trader based in Mumbai said.
Given the lack of improvement in downstream paints and coatings industry, players expect an increase in imports to depress local prices once more.
Separately, discussions on a cost-and-freight (CFR) India basis were at $1,090-1,100/tonne (€850-858/tonne) for Singapore parcels, and $1,070-1,100/tonne for South Korean origins, traders said.($1 = Rs60.11 / $1 = €0.78)
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