Demand Weak, Toluene Market Slightly Downgraded

August 11th news

According to the commodity market analysis system, the toluene market experienced fluctuations and a decline from August 4 to August 11, 2025. On August 4, the benchmark price of toluene was 5,580 CNY/ton, while on August 11 it dropped slightly by 0.36% to 5,560 CNY/ton. During this period, the toluene market saw a slight decrease. Affected by fluctuations in crude oil prices, the toluene market experienced narrow declines this week. In Shandong region, factory prices generally fell slightly during the week, with self-use being the primary demand and tight supply within the region. Supply in East China and South China regions was relatively loose during the week. Weakness in crude oil prices impacted market sentiment, and Sinopec's listed prices in South China were reduced, leading to a general downward trend in spot market prices.

Cost Aspect: As of the 8th, the settlement price for the September contract of U.S. WTI crude oil futures was reported at $63.88 per barrel, while the settlement price for the October contract of Brent crude oil futures was reported at $66.59 per barrel. Influenced by bearish factors in the crude oil market, on one hand, OPEC+ announced that it had completed cumulative production increases totaling 2.3 million barrels per day by September, marking the organization's early exit from its over two-year plan to reduce output by more than 2.2 million barrels per day. This news is negative for the oil market. On the other hand, geopolitical tensions in the Middle East continue to affect the oil market, and global macroeconomic data remains weak. Coupled with the approaching off-season for summer demand in the United States, these fundamental factors will continue to put downward pressure on crude oil prices.

Supply side:

Sinopec's toluene production is operating normally, with stable production and mostly self-used products, maintaining a balanced production and sales. As of August 11, the East China company quoted 5,500 CNY/ton, the North China company quoted 5,500 CNY/ton, the South China company quoted 5,650-5,700 CNY/ton, and the Central China company quoted 5,600 CNY/ton.