US Toluene prices remained stable in early January 2026 due to balanced supply and demand. Demand held steady but quiet, as the most active buyers being TDI manufacturers, who require Toluene to produce toluene diisocyanate for foam used in automotive seating, insulation, and other industrial applications. Softer demand for furniture and bedding was a drag on overall usage. Solvent and chemical intermediate users picked up only limited support, with factories ramping up slowly after the holidays. The demand for gasoline blending remained low as winter fuel regulations and lower run rates at refineries restricted the availability of Toluene as an octane enhancer. The supply was steady, but the price support weakened with falling upstream crude oil prices. Exports also cleared well with strong overseas interest and a competitive US dollar. In the coming weeks of the first quarter 2026, firmer buying, reduced US refinery production, strong crude oil prices, as well as better export demand and market conditions, will see a rise in US Toluene prices.
