The toluene market is currently experiencing a supply-demand stalemate, with prices temporarily stable. Downstream suppliers are purchasing on demand, and traders are showing increased willingness to ship. However, there is a lack of clear directional guidance, and the market is expected to remain weak and volatile in the short term.
On the supply side, domestic toluene production capacity is sufficient, refinery utilization rates are stable, and imports are limited, making overall supply pressure manageable. On the demand side, demand in downstream industries such as solvents, coatings, and gasoline blending remains stable. However, the increasing penetration of new energy vehicles is exerting long-term pressure on traditional gasoline consumption, limiting the potential for growth in toluene demand. Regarding costs, crude oil price fluctuations are weakening support for toluene, and the market is more focused on changes in supply and demand fundamentals.
In the short term, the toluene market lacks breakthrough opportunities, and prices may continue to consolidate weakly. It is important to monitor the pace of downstream purchasing and crude oil price fluctuations.
