In the China domestic toluene market in the quarter from July to September, supply/demand slackened. Domestic demand was dull while supply was ample. For this reason, suppliers focused on sales for export.

In the quarter, few toluene facilities in the country underwent maintenance. In addition, Chambroad Petrochemicals and Yulong Petrochemical started up new facilities and supply increased. On the other hand, domestic demand was sluggish and supply/demand was slack. In the overseas market, toluene demand as a gasoline component was firm in Southeast Asia. Therefore, traders focused on exports to this region. Further, the arbitrage from Asia to Europe was open at the time and export from China to Europe also increased. Export of toluene in the quarter was at 241,200mt, up 151,200mt from the same quarter in 2024.

In the quarter from October to December, supply/demand is still expected to be slack. Few toluene facilities in the country are scheduled to enter maintenance. Further, companies such as Hunan Petrochemical, Fengli Petrochemical and Guangxi Petrochemical are scheduled to start up new facilities. Supply is seen to be more ample. On the other hand, it will be the low demand season for toluene in October onwards. Therefore, export volume of toluene in the period might be at the highest level of this year.