Firm Upstream and High Demand signalling further surge in Toluene Prices
- 24-Mar-2022 5:35 PM
- Journalist: Jung Hoon
Toluene costs have been rising globally as crude oil prices continue to rise. The current Russia-Ukraine conflict has resulted in significant changes in the market trends, including an increase in freight charges. Aside from the battle, the COVID outbreak in China has pushed up Toluene prices, with increasing demand from the regional market causing the price to skyrocket. These crises have had a massive impact on the global economy.
China, as one of the top importers of Toluene, has been hit hard by the revival of COVID, which has imposed harsh restrictions in major cities. The price of Toluene has soared because of increased lockdown restrictions and warehouse closures in Shenzhen. The price of Toluene was reported to be USD 1030/tonne in South Korea, a major exporter in the global market, with a week-on-week inclination of 1.48 percent compared to the previous week. Toluene is widely used in the production of gasoline, paints, thinners, and other products, and costs are rising due to lack of supply and increased demand from customers.
As the price of crude oil continues to rise, the value of its derivatives, such as Benzene and Toluene, is also growing significantly. Owing to the rerouting of shipments due to the Russia-Ukraine conflict, there has been a delay in the supply of Toluene, causing the price to climb.
As per ChemAnalyst "Toluene prices may experience upward movement in the following week due to continuous rise of demand from downstream industries such as paints, leather tanning, and so on. Due to the lack of considerable drop in petroleum prices, freight charges may also be at an all-time high. If the lockout persists, trading could be disrupted, and Toluene prices could rise even more. Price hike of Benzene can affect the Toluene price further."