Toluene prices in North America rose at the start of the final quarter of 2025 due to strong demand and tight supply. Production in the U.S. dropped in October as refineries slowed down because of weaker fuel demand and seasonal changes. This led to lower output of Toluene and other chemicals. At the same time, exports fell in September due to trade rule changes, port delays, and a strong U.S. dollar, which made American goods more costly overseas. Sanctions on Iran also disrupted supply routes for some chemical materials. Despite these issues, demand for Toluene stayed firm, with steady use in fuel blending, coatings, adhesives, and polyurethane products for the automotive and construction sectors. In the coming weeks, Toluene prices may rise further due to an expected rise in demand from Toluene Diisocyanate manufacturers to produce flexible foams and insulation materials for the automotive sector as car production picks up after the holidays. Supplies are likely to remain tight amid moderate production rates during winter.
