India
China
Singapore
Vietnam
Malaysia
Thailand
Indonesia
Germany
France
Netherlands
United States
Canada
Mexico
South KoreaIn the first quarter of 2025, South Korea’s Toluene market started to bounce back. Prices of Toluene Industrial Grade (99%) FOB Busan edged up to USD 759/MT, marking a +2.85% increase from the last quarter. This slight rise came as industries like solvents and blending resumed regular operations after the year-end lull. Many buyers were restocking inventories, which helped support demand. Output levels within the country remained steady, ensuring that the supply landscape stayed balanced.Â
According to the PriceWatch, In Q2 2025, Toluene prices averaged USD 670 per metric ton on FOB Busan basis. This reflected a sharp quarterly decline of -11.77% driven by weak regional and export demand. The Toluene price trend remained under pressure across Asia due to lower downstream activity in solvents, gasoline blending, and chemical intermediates. Major buyers in Southeast Asia slowed purchases as inventories remained sufficient.
Supply from South Korea stayed stable, with most refiners maintaining run rates despite thin margins. Crude oil prices showed a declining pattern, which led to softer upstream cost support. Limited arbitrage opportunities to the US and Europe kept export flows restricted. The Toluene price chart showed consistent downward movement through April to June, without any major rebounds. Meanwhile, freight costs on regional routes stayed mostly unchanged. Overall, the Toluene market remained sluggish with few demand triggers.Â
At the beginning of 2024, the Toluene market in South Korea experienced a clear downward shift. Prices of Toluene Industrial Grade (99%) FOB Busan settled at USD 908/MT, which was –11.84% lower than the previous quarter. The decline happened mainly because demand from sectors like paints, adhesives, and construction was quite slow. The market stayed quiet, and supply was not disrupted, as most producers-maintained output. With few buyers and stable production levels, prices naturally trended downward.Â
During Q2 2024, a modest recovery was seen in Toluene prices FOB Busan, which reached USD 915/MT, indicating a slight +0.77% uptick from the preceding quarter. Seasonal buying picked up, especially from the construction and solvent segments. Export movement was a bit more active, and refineries handled production more carefully after the earlier dip. With crude oil prices staying steady and logistics running smoothly, the market found a bit of balance—though demand overall remained on the cautious side.Â
The July–September 2024 period brought another setback to the market. Prices of Toluene Industrial Grade (99%) FOB Busan dipped to USD 829/MT, down by –9.40% compared to Q2 2024. Demand weakened as downstream industries faced softer export orders and stiff competition. Consumption within the country slowed, and stock levels started building up. Even though crude oil prices held steady, the lack of strong pull from the market dragged Toluene prices lower. Some producers tried cutting output, but high availability kept the pressure on.Â
In the fourth quarter of 2024, Toluene prices in South Korea fell further. Toluene Industrial Grade (99%) FOB Busan was assessed at USD 738/MT, registering a notable –10.98% drop from the previous quarter. This was mainly due to reduced demand from end-use sectors like paints and resins, which typically slow down toward year-end. Many plants scaled back operations during the holiday season, and buying remained sluggish. On top of that, there were no major supply issues, and imports flowed steadily, which led to an oversupplied market and further price drops.Â
During Q1 2025, prices of Toluene Industrial Grade (99%) (Bulk) Ex- Kandla inched up slightly to USD 853 per metric ton, recording a +1.29% rise over the previous quarter. This minor increase was due to renewed buying interest from the solvent and chemical sectors, which started restocking after the year-end lull. Supportive crude prices and steady port operations ensured regular supply movement, while stable demand helped the market maintain a balanced tone. The quarter closed on a steady note with no major price disruptions.Â
According to the PriceWatch, In Q2 2025, Toluene prices in India averaged USD 759.9 per metric ton on Ex-Kandla basis. This marked a quarterly drop of -11.82% as buying slowed across key downstream industries. The domestic Toluene market witnessed steady inflow of imported cargoes despite lower consumption from paints, resins, and adhesives segments. Domestic producers held price offers under pressure, facing resistance from end-users. Inventory levels stayed on the higher side, limiting fresh demand.
The Toluene price trend showed persistent softness across all three months, supported by weak cost dynamics and stable refinery operations. Seasonal delays during pre-monsoon transport had minimal impact on overall logistics. According to the Toluene price chart, prices trended downward in a narrow band, echoing subdued sentiment across the Indian Toluene market.Â
During Q1 2024, Toluene Industrial Grade (99%) (Bulk) Ex- Kandla prices in India dropped to USD 992 per metric ton, marking a +5.43% decrease compared to the previous quarter. This fall was mainly due to sluggish demand from the paint, coatings, and adhesive industries, which had reduced buying activity. At the same time, international crude oil prices remained somewhat stable, leading to better availability of feedstock. Increased local inventories and steady import volumes also helped ease the price pressure.Â
In Q2 2024, prices of Toluene Industrial Grade (99%) (Bulk) Ex- Kandla rebounded to USD 1050 per metric ton, reflecting a +6.41% increase over the previous quarter. The rise came after higher seasonal demand from the construction and automobile sectors, which use toluene-based products like solvents and sealants. Festive season production and bulk buying from downstream users contributed to the upward trend. Additionally, some supply delays from the Middle East and Southeast Asia affected availability, pushing prices higher.Â
By Q3 2024, Prices of Toluene Industrial Grade (99%) (Bulk) Ex- Kandla dropped sharply to USD 940 per metric ton, a –10.15% fall from Q2. This decline came as a result of reduced industrial activity during the monsoon months, with several downstream plants running at lower capacities. Global toluene supplies also improved due to smoother refinery operations, allowing Indian importers to procure at better rates. The drop in demand from paint and thinner producers also played a key role in this price correction.Â
In Q4 2024, prices of Toluene Industrial Grade (99%) (Bulk) Ex- Kandla continued their downward trend, reaching USD 864 per metric ton, showing a –7.34% decrease from Q3. The decline was mainly driven by weak year-end demand, as industries slowed down operations for maintenance and inventory checks. In addition, rising import volumes, along with better availability from domestic refineries, led to oversupply in the market. This kept buyers cautious and led to softer pricing across the country.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Toluene is a clear, water-insoluble liquid with a distinctive sweet, pungent odor, and is highly flammable. It is primarily used as an industrial solvent and chemical intermediate. Toluene serves as a key feedstock in the production of benzene, toluene diisocyanate (TDI), and other petrochemical derivatives. It is commonly derived from the catalytic reforming of petroleum or as a byproduct of coke oven processes. Toluene plays a critical role in industries such as paints and coatings, adhesives, pharmaceuticals, and chemical manufacturing.
Packaging Type
Toluene Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Properties | |
| Density | 867 kg/m³ @ 25 °C |
| Flash point | 4.4 °C (Closed cup) |
| Boiling point | 110.6 °C @ 1 atm |
| Vapor pressure | 3.8 kPa @ 20 °C |
| Appearance | Clear, colorless liquid with a sweet, aromatic odor |
Toluene Applications
Toluene is primarily used as a versatile chemical intermediate and industrial solvent across various sectors. It is widely employed in the production of benzene and toluene diisocyanate (TDI), which are essential for manufacturing polyurethane foams used in furniture, insulation, and automotive seats. Toluene also plays a crucial role in the formulation of paints, coatings, adhesives, inks, and cleaning agents due to its excellent solvency properties. Additionally, it is used in the production of explosives like TNT and in the synthesis of pharmaceuticals and agrochemicals. Toluene supports critical downstream chemical processes, making it indispensable to the petrochemical and manufacturing industries.Â
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Global Petrochemical Oversupply and Tariff Pressures (2025): In 2025, the global petrochemical sector faced challenges due to oversupply, particularly from new capacities in China. This led to reduced profit margins and plant closures in Europe and Asia. Additionally, new U.S. import tariffs introduced by President Donald Trump exacerbated the situation by raising costs for goods, thereby reducing consumer demand and downstream petrochemical usage. These factors combined to create a complex market environment, influencing Toluene prices worldwide.Â
Russia–Ukraine Conflict Impact on Energy Prices (2022–2023): The outbreak of the Russia–Ukraine war led to major disruptions in global energy markets. Crude oil and natural gas prices spiked sharply, directly affecting the cost of petrochemicals, including Toluene, which is derived from crude oil. Refinery operations in Europe were disrupted due to supply issues and sanctions, tightening availability. The high feedstock costs and uncertain energy supply caused Toluene prices to rise globally, especially in Europe and Asia.​Â
COVID-19 Pandemic and Lockdowns (2020): During early 2020, global demand for solvents and industrial chemicals, including Toluene, plummeted as manufacturing, construction, and transportation came to a halt. Prices fell sharply due to low consumption. However, as lockdowns eased in the second half of the year, restocking and resumed industrial activity led to a sudden jump in demand. This mismatch, coupled with slow supply recovery, caused noticeable price volatility.​Â
U.S.–China Trade Tariff Conflict (2018–2019): During the trade dispute between the U.S. and China, heavy tariffs were placed on many petrochemical products. Toluene, along with its derivatives like benzene and toluene diisocyanate (TDI), faced restricted trade flows. This disrupted traditional supply chains and led to stockpiling and price swings. While some regions saw oversupply, others faced shortages, creating a patchy and unstable pricing trend across markets.​Â
China’s Environmental Inspections & Production Cuts (2017–2018): China launched aggressive environmental inspections across its chemical industry to reduce pollution. Numerous plants producing aromatics, including Toluene, were shut down or operated at reduced capacity. With China being a key global player in petrochemical production, this caused a ripple effect on global supply, pushing prices upward, especially in the Asia-Pacific region.​Â
PriceWatch is your trusted resource for tracking global toluene price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the toluene market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Toluene is a clear, water-insoluble liquid with a distinctive sweet, pungent odor, and is highly flammable. It is primarily used as an industrial solvent and chemical intermediate. Toluene serves as a key feedstock in the production of benzene, toluene diisocyanate (TDI), and other petrochemical derivatives. It is commonly derived from the catalytic reforming of petroleum or as a byproduct of coke oven processes. Toluene plays a critical role in industries such as paints and coatings, adhesives, pharmaceuticals, and chemical manufacturing.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Properties | |
| Density | 867 kg/m³ @ 25 °C |
| Flash point | 4.4 °C (Closed cup) |
| Boiling point | 110.6 °C @ 1 atm |
| Vapor pressure | 3.8 kPa @ 20 °C |
| Appearance | Clear, colorless liquid with a sweet, aromatic odor |
Applications
Toluene is primarily used as a versatile chemical intermediate and industrial solvent across various sectors. It is widely employed in the production of benzene and toluene diisocyanate (TDI), which are essential for manufacturing polyurethane foams used in furniture, insulation, and automotive seats. Toluene also plays a crucial role in the formulation of paints, coatings, adhesives, inks, and cleaning agents due to its excellent solvency properties. Additionally, it is used in the production of explosives like TNT and in the synthesis of pharmaceuticals and agrochemicals. Toluene supports critical downstream chemical processes, making it indispensable to the petrochemical and manufacturing industries.Â
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Toluene prices are affected by several key factors, including the cost of feedstocks like crude oil and natural gas. Other significant influences include fluctuations in crude oil prices, refinery production levels, transportation costs, and environmental regulations. Additionally, supply-demand imbalances, particularly in major production regions like Asia and North America, and disruptions due to geopolitical issues or natural disasters, can impact toluene pricing trends.
Supply chain disruptions, such as plant shutdowns, port delays, or shortages of raw materials, can lead to sharp increases in toluene prices. For example, when crude oil supplies tighten due to refinery outages or production cuts, toluene production costs rise, leading to higher market prices. Conversely, improved supply chain efficiency or reduced transportation costs can help stabilize or lower toluene prices. Procurement teams should stay informed on supply chain developments to optimize their purchasing strategies.
Toluene prices vary significantly across different regions due to factors like production capacity, local demand, and logistics. For instance, Asia, a leading producer of toluene, often has more competitive prices compared to Europe or the US, where higher production costs and stricter environmental regulations may drive up prices. Procurement heads should consider these regional variations by exploring opportunities to source toluene from cost-competitive regions or leveraging long-term contracts in regions with favourable pricing to reduce exposure to price volatility.
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