Supply and Demand Bearish, Toluene Market Declines

October 27 News

According to the commodity market analysis system, the toluene market in China fell from October 20 to October 27, 2025. On October 20, the benchmark price of toluene was 5,200 CNY/ton, and on October 27, it was 5,150 CNY/ton, a decrease of 0.96%. During this period, the Chinese toluene market showed a downward trend with fluctuations. The main refineries in Shandong Province slightly reduced their factory prices, while the overall demand from the downstream chemical and blending industries remained stable, with purchases mainly driven by necessity. In East China and South China, prices also slightly decreased, and the enthusiasm of downstream buyers was weak. Overall, the toluene market in China operated in a relatively weak but stable manner this week.

Cost Perspective: According to the commodity market analysis system, as of the 24th, the settlement price for the December WTI crude oil futures contract stood at $61.50 per barrel, while the December Brent crude oil futures settled at $65.94 per barrel. This week, crude oil prices initially fell before rebounding. At the beginning of the period, OPEC+ initiated a new round of production increases totaling 1.65 million barrels per day. However, the market remains concerned about the long-term risk of supply surplus. Meanwhile, the easing of tensions between Israel and Palestine, coupled with weakening demand in the U.S., has weighed on global economic growth and dampened expectations for energy demand, causing international oil prices to plunge sharply. Later in the period, though, as Western nations continued their sanctions against certain oil-producing countries—and amid growing concerns that the negative pressures from U.S. tariffs and trade disputes were starting to ease—the crude oil market began to recover, driving prices higher.

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 October 27, the East China company quoted 5150 CNY/ton, the North China company 4950 CNY/ton, the South China company 5400-5500 CNY/ton, and the Central China company 5150 CNY/ton.