Continuous Logistic Disruptions May Extend the Hike in Toluene Prices in Germany
- 16-Mar-2022 5:47 PM
- Journalist: Jung Hoon
The global crisis (Russia-Ukraine conflict) has been causing chaos in many countries affecting trade and economic status. Among those, Germany has also been witnessing exponential price growth in Toluene for the following week. According to ChemAnalyst statistics, Toluene prices have risen by roughly 4% in the last week, with a price of USD 1150/MT. Germany based logistics company, Expeditors Internationals recently announced cyberattack on their system that has slowed down their operations across international market. Company is currently fighting to recover from a cyberattack, which has added to the current tense situation.
Due to this cyberattack company’s global operations were affected. The conflict has caused many ships to reroute, which has led to suspension of shipments to and from Russia and Ukraine temporarily. So, the Russian invasion has caused an upsurge in freight charges.
The ongoing conflict between Russia and Ukraine has had a significant impact on oil prices, driving a bullish spike in the first week of March. Since Toluene is derived from crude oil, rising crude prices and tight supply have resulted in a significant hike in prices. The downstream industries such as cosmetics and the paint industry sought-after Toluene, due to the growing demand from end users. Due to the growth of home improvement projects, demand for paints will rise, forcing the paint industry to increase production.
As per ChemAnalyst, the price of Toluene tends to rise in the upcoming weeks due to the high demand and tight supply in the global market. Crude oil prices may rise further, which directly affects the freight charges leading to it rising. Since the Expeditors are suffering due to the cyberattack, it can affect the global market and may slow down trade.