India toluene slips from a 5-month high on stronger rupee, weak Asia

26 July 2013 07:30  [Source: ICIS news]

CHANGSHA, CHINA (ICIS)--India toluene prices fell late on Thursday from a five-month high in early week, undermined by softer Asia numbers and appreciation in Indian rupee in recent days, traders said on Friday.

On 26 July morning, spot toluene prices were largely discussed at Indian rupee (Rs) 75.00/kg (Rs75,000/tonne) ex-tank, which is equivalent to an import parity of $1,204/tonne CFR (cost and freight) for South Korean origin, $1,234/tonne CFR India for Singapore cargoes and $1,172/tonne CFR India for European and Iranian origins, they said.  

Spot prices were hovering at a five-month high at Rs75.50-76.00/kg ex-tank on 23-24 July, buoyed by a decline in local inventories, according to ICIS.

Stock levels across the country are at 30,000-35,000 tonnes, down from previous month’s level of more than 50,000 tonnes, because of lack of import arrivals from Asia, players said.

“Only Iranian cargoes [of 2,500 tonnes] have arrived this week. Singapore cargoes should arrive soon,” a Mumbai-based trader said.

Expectations that a total of 15,000 tonnes of Singapore lots will be loaded in first week and last week of August has weighed on market sentiment, local players said.

“This is close to double higher than July import volumes,” a second Mumbai-based trader said.

“Although inventories are low now, with this arrival, stock levels will increase again since downstream demand will not pick up faster than the increase in supply,” a third Mumbai-based trader said.

In August, demand from downstream solvent sector is expected to improve from June and July, because of the end in monsoon period and ahead of Diwali festival in early November.

($1 = Rs59.02)

Author: Ong Sheau Ling

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