Since November, although crude oil prices have soared and fallen, the toluene market has changed its trend with the fluctuations in oil prices, tenaciously resisting the pressure of falling oil prices, and even reversed course, slowly rising from about 8,000 yuan at the end of October to 8,400 yuan recently (out of the tank price).

Since November, although crude oil prices have soared and fallen, the toluene market has changed its trend with fluctuations in oil prices, tenaciously resisting the pressure of falling oil prices, and even reversed course. From about 8,000 yuan at the end of October, it has slowly risen to the recent 8,400 yuan (tank price), and imported toluene has also increased from USCF1,140 CFR to the current USCF1,180 CFR, showing a steady, medium and small increase in general.At the same time, the total inventory of toluene tank areas in East China has also rapidly decreased from about 160,000 tons to less than 100,000 tons.

Analyzing the reasons for the above-mentioned market changes, the main reason is that giants such as Sinopec and PetroChina, as well as some other local refiners, use part of toluene to make gasoline and diesel, which reduces market supply and exacerbates market expectations of subsequent tight supply and bullish prices. In addition, although the downstream market demand is flat, it has remained basically stable, temporarily supporting the small price increase in the toluene spot market.

However, market analysts also reminded that the supply of imported toluene in the future is sufficient. Tens of thousands of tons of imported goods will arrive in Hong Kong at the end of November to replenish. The use of toluene to make gas and oil may temporarily come to an end. In addition, the price has risen to the current level. If it continues to rise, the downstream will be unbearable.Therefore, it is advisable to be cautiously optimistic about the future market.