Weak Demand Leads to Fluctuations and Decline in Toluene Market in July in China

July 31st News

According to the commodity market analysis system, the toluene market in July 2025 showed a fluctuating downward trend. From July 1 to July 30, the price of toluene in China fell from 5,820 CNY/ton to 5,490 CNY/ton, with a decline of 5.67% during the period.

In the first half of this period, the toluene market experienced fluctuating increases. This week, supply in Shandong was relatively tight due to some enterprises suspending operations for maintenance, resulting in a noticeable shortage in market supply. Downstream blending industry showed moderate purchasing interest, with overall demand mainly driven by essential needs. The East China and South China regions were also affected by port conditions this week, leading to tighter supply as well. Supported by favorable supply-side factors, market prices generally rose.

Mid-month: During this period, markets across China generally declined. In Shandong, due to weak demand, refineries frequently lowered their quotations, leading to a noticeable drop in prices. Later, as prices continued to fall, some downstream buyers began to replenish their inventories at lower prices, significantly improving sales. Blending companies showed strong demand, while other industries maintained a more stable, need-based demand. In the East China region, despite low inventory levels providing some support, prices saw a slight decrease. In South China, although inventory levels were also low, weak downstream demand led to a minor decline in prices.

Late period: During this period, the xylene market in China as a whole declined and then rebounded slightly, with an overall weak trend. The decline in crude oil prices during the period dragged down market sentiment. In the Shandong region, downstream demand was weak, and although refineries proactively lowered their quotations, transactions remained limited. With downstream PX companies entering the market to replenish inventory, the market showed a slight improvement. The East China region continued to operate on the weaker side, with inventories at relatively low levels. In the South China region, as refineries lowered their posted prices, the market declined, and downstream demand was mainly for essential needs.

Cost Aspect: As of the 28th, the settlement price for the main contract of U.S. WTI crude oil futures was reported at $66.71 per barrel, while the settlement price for the main contract of Brent crude oil futures was reported at $70.04 per barrel. During this pricing cycle, crude oil prices mainly fluctuated. On one hand, OPEC+ is highly likely to complete its production increase plan of 2.2 million barrels per day before the end of September. Additionally, the trade agreement reached between the United States and Japan has led to a slight decline in international oil market trends. On the other hand, concerns about tariff negotiations between the U.S. and Europe persist, and factors such as Middle East issues and European geopolitical tensions continue to affect the oil market, keeping crude oil prices in a volatile range.

Supply side:

Sinopec's toluene enterprises are operating normally, with stable production. Most of the products are for internal use, and production and sales are balanced. As of July 30, the East China company quoted 5,500 CNY/ton, the North China company quoted 5,500 CNY/ton, the South China company quoted 5,750-5,800 CNY/ton, and the Central China company quoted 5,550 CNY/ton.