Toluene Prices Surge on Higher Crude Oil Costs, Weak Demand Cuts Gains

The toluene market in China rose last week due to increasing costs of upstream naphtha feedstock driven by higher international crude oil prices.

The cost of naphtha, a key input for toluene production, increased as Brent crude oil futures rose to $94.39 per barrel and US WTI crude oil futures reached $87.06 per barrel.

However, the market's upward momentum was limited by weak demand from downstream sectors, which are struggling with margin compression due to sustained increases in toluene prices.