toluene Pricing Assessment

Markets Covered:

India

China

Singapore

Vietnam

Malaysia

Korea

Thailand

Indonesia

Germany

France

Netherlands

United States

Canada

Mexico

Toluene Price Trend, Analysis and Forecast

In Q1 2024, the global Toluene market experienced varied pricing trends across major regions. In China, the average price of Toluene was reported at $955.47/MT, reflecting a decrease of 9.3% from the previous quarter. This decline was largely attributed to a slowdown in demand from key sectors, including automotive and industrial applications, coupled with increased production capacity and lower feedstock costs. Similar patterns were observed in South Korea, Thailand, Germany, and the USA, where prices adjusted downward in response to these factors.

By Q2 2024, the Toluene market in China saw prices fall further to $932.50/MT, a decrease of 2.4% from Q1. This downward trend was driven by a combination of factors: ongoing overcapacity issues, a reduction in demand from the petrochemical industry, and lingering supply chain disruptions. The weakening demand in major industrial sectors and a moderate drop in feedstock prices also contributed to the overall negative market sentiment.

Entering Q3 2024, the Toluene market in China experienced another price drop to $870/MT in August, marking a 3.55% decrease from July. This decline can be attributed to global oversupply conditions, reduced industrial activity, and persistent logistical challenges. The global market faced issues such as uneven recovery rates in different regions, ongoing freight disruptions, and an overall slowdown in economic activity, which exerted downward pressure on prices.

Looking ahead to Q4 2024, the Toluene market is expected to face continued downward pressure. Potential factors influencing this trend include ongoing global economic uncertainties, persistent oversupply, and potential changes in feedstock prices. Additionally, fluctuations in demand due to seasonal variations and regional economic conditions could further impact market dynamics. As the quarter progresses, stakeholders should monitor these factors closely to navigate the evolving market landscape.

Why ?

is your trusted resource for tracking global benzene price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the benzene market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence benzene prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely Lactic Acid market data.

Track ‘s benzene price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

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, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence toluene prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely toluene market data.

Track 's toluene price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in toluene prices

Global Crude Oil Price Volatility (2015-Present): Since toluene is derived from crude oil, fluctuations in oil prices have had a direct impact on its production costs. From the oil price crash in 2015 to the sharp drop during the COVID-19 pandemic, these fluctuations caused instability in toluene pricing. As oil prices recovered post-pandemic, the cost of toluene followed suit, affecting industries that rely on toluene for paints, coatings, and solvents.

COVID-19 Pandemic (2020-2022): The pandemic caused widespread disruptions in supply chains, with shutdowns in manufacturing plants and labor shortages globally. Toluene production was hit hard as demand from key sectors like automotive and construction dropped. However, there was increased demand from industries like packaging and pharmaceuticals, which rely on toluene derivatives. These opposing forces led to volatility in the supply-demand balance, creating sharp price swings.

Winter Storm Uri (February 2021, U.S.): This storm severely affected petrochemical production in the U.S., particularly in Texas, a key hub for chemical refineries. Power outages led to the shutdown of toluene production facilities, causing supply shortages. The impact on toluene feedstocks like benzene and xylene also triggered price hikes in both the U.S. and global markets, further tightening supply chains already affected by the pandemic.

Global Shipping and Logistics Crisis (2021-Present): Ongoing disruptions in global logistics, worsened by the pandemic, led to higher transportation costs and delays in the delivery of raw materials, including toluene. The surge in demand for shipping, coupled with port closures and container shortages, made it difficult for toluene producers to meet demand, especially in Asia and Europe. This imbalance in supply and demand contributed to price volatility throughout the market.

Russia-Ukraine Conflict (2022-Present): The conflict disrupted energy supplies, particularly natural gas, and crude oil, which are critical to the petrochemical industry. Europe, heavily dependent on Russian energy, faced challenges in securing raw materials for toluene production. This led to increased production costs and supply disruptions, further impacting the European and global toluene markets.

Global Energy Crisis (2021-2023): The rising prices of natural gas and crude oil during the global energy crisis made the production of petrochemicals like toluene more expensive. High energy costs drove up production costs across all regions, causing toluene prices to rise. This also led to reduced production output in some areas, particularly in Europe, where energy shortages were more pronounced.

These events have collectively shaped the toluene market over the past decade, contributing to periods of both rapid price increases and temporary market softening.

Methodology and Specifications

toluene Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: Our methodology aggregates real-time pricing data for toluene from a range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions for toluene.

On-the-Ground Intelligence: We gather insights directly from key market participants, such as producers, suppliers, traders, and end-users in major toluene production regions like the U.S., China, and Europe. This direct intelligence is vital for understanding localized market dynamics and trends.

Supply Chain Monitoring: We track the entire toluene supply chain, from the availability of raw materials like crude oil and naphtha to production and distribution channels. This includes monitoring fluctuations in feedstock prices, production capacities, and transportation logistics, all of which impact toluene pricing.

Event Tracking and Impact Analysis

Geopolitical Tensions: We monitor global geopolitical developments that can affect toluene production and trade. Issues such as conflicts or trade disputes, especially those impacting major oil-producing regions, can disrupt supply chains and influence toluene prices.

Climate and Weather Events: We assess the impact of significant weather events, such as hurricanes or extreme temperatures, which can affect oil refineries and toluene production facilities. These events may cause temporary disruptions in supply and impact prices.

Economic Shifts: We analyze macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand, particularly from industries like automotive and construction. These factors influence toluene demand and pricing, as well as potential shifts in market conditions.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a detailed database of global toluene production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to accurately assess current supply availability.

Future Capacity Projections: Our research includes forecasts of upcoming toluene production capacities, accounting for new plant constructions, expansions, and technological advancements. This helps predict future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: We provide in-depth analysis of demand trends across key sectors, including automotive, paints, coatings, and chemicals. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and their influence on global toluene pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations on toluene demand.

Pricing Model Development

Dynamic Pricing Models: We use advanced econometric models to forecast toluene prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions, including best-case, worst-case, and most likely scenarios. This helps our clients prepare for various market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports with current price assessments, future forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: We offer continuous updates and personalized support, ensuring our clients have the latest information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This methodology ensures that we deliver accurate, timely, and actionable toluene pricing assessments, helping clients stay ahead of market trends and make well-informed business decisions.

Specifications

Molecular Weight[g/mol]

92.14

CAS No

108-88-3

HS Code

290230

Molecular Formula

C₆H₅CH₃

toluene

Toluene is a versatile, colorless liquid hydrocarbon obtained from the refining of crude oil or natural gas. It is commonly used as a solvent in industrial processes and as a starting material in the production of chemicals like benzene and xylene. Due to its effective solvent properties and its role in the manufacture of paints, coatings, and adhesives, toluene is widely utilized across various industries. Its ability to dissolve a range of substances makes it an essential component in numerous chemical and manufacturing applications.

Packaging Type

Drum (170 Kg)(Domestic, Import-Export), Tanker (Domestic)

Grades Covered

Industrial Grade (99%)

Incoterms Used

FOB Qingdao, FOB Busan, FOB Laem Chabang, FOB Houston, CIF Nhava Sheva (South Korea), CIF Nhava Sheva (China), CIF Nhava Sheva (Thailand), Ex- Kandla, Ex- Ahmedabad, CIF Singapore (China), CIF Haiphong(China), CIF Haiphong (Thailand), CIF Port Kelang (China), CIF Jakarta (Thailand), FD Hamburg, FD Le Havre, FD Rotterdam, CIF Montreal (USA), CIF Manzanillo (USA)

Synonym

Methyl Benzene

Quotation Terms:

25-30 MT

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.

Parameters	Specification Limits
Appearance	Clear liquid free of sediments or Haze
Colour	10 Max.
Purity	99.8 min.
Specific gravity (a),15.5/15.5°C	0.870 – 0.874
Cu Corrosion	To Pass
Acidity / Neutrality	Neutral
Distillation l to 96 %	Within 0.6 °C (including 110.6°C)
Non Aromatic	2000 max.
Benzene	500 max.
Moisture	500 max.

Applications

Toluene is a versatile chemical used primarily as a solvent in paints, coatings, and adhesives due to its ability to dissolve various substances. It is also a key precursor in producing chemicals like benzene and xylene, which are essential for manufacturing plastics, synthetic fibers, and resins. In the automotive industry, toluene is used in fuels and additives to enhance engine performance and in coatings and sealants for durability. Additionally, it plays a role in industrial processes such as producing explosives, rubber chemicals, and pharmaceuticals.

Disclaimer

Toluene price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for toluene. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

Request a Price Watch Demo

Frequently asked questions

What factors influence toluene prices in the global market? +

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.

How do supply chain disruptions impact the pricing of toluene? +

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.

What are the regional price differences for toluene, and how should procurement heads adapt? +

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.