Supply and Demand Game, Toluene Market Trend Stabilizes in China

August 15th News

According to the commodity market analysis system, the toluene market in China operated steadily from August 8 to August 15, 2025. The benchmark price of toluene was 5,560 CNY/ton on August 8 and remained at 5,560 CNY/ton on August 15, showing no change. During this period, the toluene market in China operated steadily. In the Shandong market, some companies mainly used their production for internal use and did not sell externally, while those that did sell externally mainly relied on pre-sales. Refinery quotes generally remained stable. In the East China market, bearish and bullish factors were intertwined, and under the influence of supply and demand competition, the market operated steadily. Although the supply in the South China region was slightly tight, the weakening crude oil prices affected market sentiment, and prices remained stable this week.

Cost Aspect: During this period, crude oil prices mainly fluctuated within a range. On one hand, OPEC+ announced that it had completed the cumulative production increase of 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 was bearish for the oil market. On the other hand, geopolitical tensions in the Middle East continued to affect the oil market, while global macroeconomic data remained negative. Additionally, with U.S. summer demand approaching the off-season, crude oil market prices continued to face downward pressure. As of August 14, the settlement price for the September contract of U.S. WTI crude oil futures was reported at $63.96 per barrel, and the settlement price for the October contract of Brent crude oil futures was reported at $66.84 per barrel.

Supply side:

Sinopec's toluene production is operating normally, with stable production and most of the products being used internally, resulting in a balanced production and sales. As of August 15, 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.