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Toluene Prices Show Mixed Sentiment in the Global Market, Price Recovery in the US
Toluene Prices Show Mixed Sentiment in the Global Market, Price Recovery in the US

Toluene Prices Show Mixed Sentiment in the Global Market, Price Recovery in the US

  • 10-Mar-2023 5:04 PM
  • Journalist: Nina Jiang

The Toluene market dynamics are in an upward trajectory since the beginning of the year 2023 in the Chinese region and the trend continued in February 2023. The prices of the commodity have been steadily inclining amid rising crude oil imports in the domestic market. From January to February, the Toluene prices increased by 11.9% and are continuing to rise further amid tight spot supply in the domestic region.

China’s manufacturing activities increased sharply in February as the factories began to return to normal rates after months of coronavirus disruption in the country. Rebound of production by the manufacturing companies accelerated and demand from the derivative mixed xylene and benzene segment rose. Also, the activity of the services jumped sharply as the demand recovers in the country.

On the other hand, in the North American region, an upsurge in the interest rate of the Federal Reserve proved a bad move for crude oil prices, pushing the crude oil prices downhill. Also, the manufacturers in the region are baffled by the weaker purchasing of Toluene and its derivatives in the domestic market.

In Europe, high raw materials, energy prices, rising interest rates, and inflation, all had a massive impact on the overall commodity prices. The price realizations in the Eurozone for Toluene and derivatives upsurged. To tackle high inflation, the European Central Bank ECB plans to increase the lending rates by half a percentage point.

Analysts claim that the conflict in Ukraine has disrupted the Russian crude oil market, leading to the country's decision to import at lower prices. Russia capped its production rates and reduced them by 500,000 barrels per day because of the price cap imposed by the European Union. Despite this, countries like India and China took the opportunity of acquiring the discounted commodity and imported substantial amounts of oil daily.

According to ChemAnalyst, “the Toluene prices are anticipated to improve globally in the coming months. Higher production costs and looming inflationary pressure across the globe might positively increase the market fundamentals of Toluene.”

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