14 August 2013 12:16 [Source: ICIS news]
SINGAPORE (ICIS)--Spot toluene prices in the Indian domestic market hit a 22-week high on Wednesday, as oversupply conditions eased with the decline of import inventory across the country amid a weak rupee, market players said.
Prices were at Rs76.50-77.00/kg ex-tank in Kandla and at Rs77.50/kg ex-tank in Mumbai as of midday in India, according to ICIS.
Stock levels have fallen to close to 30,000 tonnes, compared with 35,000-40,000 tonnes a month ago, traders said.
India imports 20,000 tonnes of toluene monthly, they said.
A weak currency makes imports more expensive. The rupee was trading at above Rs61 levels to the US dollar on Wednesday.
“Import arrivals have been decreasing in June and July. This helped to relief the stock levels,” a Mumbai-based trader said.
Kandla received around 8,000 tonnes of toluene a month in June and July, from May’s level of more than 12,000 tonnes.
Besides lower import volumes, a local producer will have less spot volume to sell in the domestic market, as it needs to supply 2,000 tonnes more toluene to an expanded downstream toluene di-isocyanate (TDI) facility in India starting next month.
($1 = Rs61.37)
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