Toluene Prices Surge 14.96% in July on Cost-Side Support and Tight Supplies
The domestic toluene market experienced a significant price increase in July, driven by both cost-side support and shifts in supply-demand dynamics. According to SunSirs, the domestic toluene price rose from 5,741 RMB/ton on July 1 to 6,600 RMB/ton on July 30, marking a cumulative increase of 14.96% over the period.
Cost-side support played a key role in the market's upward trend, with crude oil prices exhibiting a volatile yet firm trend throughout the month. As of July 29, the settlement price for the September contract of US WTI crude oil futures stood at $84.46 per barrel, while the settlement price for the October contract of Brent crude oil futures was $88.09 per barrel.
The supply side also contributed to the market's upward trend, with domestic production facilities operating at low-to-moderate levels throughout the month. Maintenance work and load adjustments at certain refineries reduced spot availability, while port inventories remained low and circulating supplies were limited.