SINGAPORE (ICIS)--India’s spot toluene prices fell to a nine-month low late on Thursday because of the recent downward adjustment of the local list prices amid tepid solvent demand, market players said.
Trades were concluded at Indian rupees (Rs) 69.50/kg ex-tank in Kandla and at Rs70.00/kg ex-tank in Mumbai, they said.
India's Reliance Industries Ltd (RIL) has cut its toluene list price – the fourth reduction this year – by Rs5.00/kg to Rs69.00/kg EXW (ex-works) with effect from 1 April on the back of high domestic inventory level.
The other domestic producer Bharat Petroleum Corp Ltd (BPCL) quoted its price at Rs67.50/kg EXW.
The price translates to $1,120/tonne CFR (cost & freight) India, based on an exchange rate of Rs60.39 to $1, market players said.
This was in spite of the recent recovery in the benchmark FOB (free on board) Korea price to a one-month high at around $1,080/tonne.
“Inventories are still high across India at close to 30,000 tonnes,” a Mumbai-based trader. This is much higher than the average monthly import requirement of 20,000-22,000 tonnes.