Toluene Prices Rise on International Crude Oil Price Surge

The toluene market experienced an upward trend last week, driven by rising international crude oil prices and tight domestic supply. According to SunSirs data, the price of toluene in Shandong province increased from 6,833.33 RMB/ton to 7,143.33 RMB/ton between August 17 and August 24, a rise of 4.54%. The cost-side factors were the primary driver behind this increase, as international crude oil prices trended upward amidst volatility. A combination of geopolitical factors and supply-demand dynamics pushed up crude oil futures, directly raising the cost of upstream naphtha feedstock.

The aromatics industry chain exhibited a strong ripple effect, with related products like pure benzene and xylene strengthening in tandem. Meanwhile, independent refineries in Shandong raised their quoted prices multiple times during the week, prompting spot prices in East, South, and North China to follow suit. However, downstream processing margins continued to weaken, resulting in limited trading volume and capping potential for further price increases.

The supply side remained tight, with low domestic inventories and constrained spot supply. Major domestic refining and integrated complexes primarily prioritized internal consumption and inter-plant transfers, limiting the volume of product released for external sale. As a result, actual market transactions were limited to small, essential orders, resulting in insufficient trading volume to sustain upward momentum.