Toluene Weekly Report 13 Oct 2018

Weekly Price Trend: 08-10-2018 to 12-10-2018

• The above given graph focuses on the Toluene price trend for current week.

• This week prices have increased. By the end of the week domestic prices were assessed at Rs 69/Kg for bulk quantity for Kandla and Rs 70/kg for Mumbai ports of India.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market price was assessed at Rs 69/kg for Kandla and Rs.70/kg for Mumbai ports of India.
• CFR India prices were evaluated at USD 865/mt, increased by USD15/MT in compare in to last week’s closing values.
• CFR China price of toluene were assessed at the level of USD 850/mt.
• FOB Korea prices were evaluated at USD 820/mt, prices increased by USD 15/MT in compare to previous week.
• CFR south East Asia price were evaluated at USD 835/mt.
• In the aromatics markets, offer prices for both toluene and xylene had notable increases due mainly to crude oil price gains and relatively tight supply during the holiday period.
• Last week there was strong rally for crude prices and was expected to cross the mark of USD 100/bbl very soon. But this week scenario was totally different. Brent crossed the mark of $86/bbl on Tuesday , lowered in last two days on back of investors sell off in the trading.
• The main story driving the oil market remains the loss of Iranian crude exports ahead of the full renewal of U.S. sanctions on Nov. 4. That deadline is still frightening large over the market and could help push oil prices back up.
• All the major nations unanimously agree that with Iran sanctions, a large chunk of oil will be removed from the market. How strong its impact is beyond everybody’s imaginations.
• Emerging markets like India are really struggling with higher oil prices coupled with continuous currency depreciation.
• Indian Rupee has depreciated more than by 15% year-to-date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate.
• China market is also facing the heat of rise in crude prices and deprecation of its own currency. Further the trade tariffs with US will affect the Chinese economy in long run. To check its impact China’s Central Bank has cut down the reserve requirement ratios (RRRs) by one per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system.
• The reserve cut, the fourth by the People’s Bank of China (PBOC) this year, came after Beijing pledged to speed up plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further.

 $1 = Rs. 73.54
 Import Custom Ex. Rate USD/ INR: 74.60
 Export Custom Ex. Rate USD/ INR: 72.90