Domestic demand for Toluene is likely to decline with government’s decision to no more consider 5oo and 1000 note as legal tender. Rupee-denominated prices of toluene have been fluctuating in the Rs45.50-47.00/kg ex-tank range since the week ended 11 November. Prices can decline further as many small time purchasers has lost their purchasing power and are strongly feeling the heat of currency crunch. Slow demand will further put on halt on any chances of rise in Domestic values. Domestic buyers need to first get used to this adjustment and it will take at least two more weeks because everything starts to stabilise,” a second west coast India-based trader said.
Despite the uncertainty and expectations of weak demand, local distributors are not expecting a huge fall in rupee-denominated prices because of their higher costs, which had resulted from stable to firm FOB Korea prices in the week ended 11 November. Toluene inventories at Kandla were estimated by market players to be at 20,000-23,000 tonnes ,an increase from 15,000-17,000 tonnes in end-October.
