Market News Today

Toluene prices in India have increased by ₹3/kg, driven by a rebound in crude oil and naphtha prices, as well as strong demand from the paints, coatings, and pharmaceutical sectors. Supply constraints, coupled with positive spreads in BTX components, suggest a further potential price hike of $70/MT in the near term. India’s Toluene demand is largely met through imports, with domestic production contributing only 16.8%.

The Indian polymer market remains steady across most categories, with minor fluctuations in specific grades. A global surplus in ABS supply is pushing prices downward, while domestic demand remains consistent. Maintenance shutdowns at key global facilities are expected to tighten supply in the short term for certain polymers like PP and PE.

The steel structure market is seeing fluctuations due to recent price hikes by primary producers like SAIL and RINL, while the secondary market remains stable. Supply constraints are a key concern, particularly in the primary segment, with plants undergoing maintenance and limited availability of crucial materials.

Zinc prices have been experiencing upward momentum due to speculation around potential production cuts and ongoing supply-side challenges. LME zinc saw a rise of 0.91%, while SHFE and MCX markets showed stable movements. Zinc inventories at LME and SHFE fell, signaling tightening supplies, while demand has been supported by moderate downstream consumption.

Government to float tenders for 30-40 renewable energy projects next week.

India's $5 billion incentive for local electronic component manufacturing aims to curb China reliance and deepen supply chains.

Primary TMT prices have been slightly reduced by SAIL and increased by distributors across various regions. Despite price reductions, demand for primary TMT has slowed down, and the market seems stagnant. Meanwhile, the Indian government is pushing for sustainable practices in the steel industry, with a focus on innovation and reducing emissions.

The stainless steel market shows mixed trends, with the 300 series facing continued low demand due to cash flow issues, while the 200 series sees a rise in demand driven by a shortage of imported material. Prices for different grades, including 304, 316L, and 201, remain relatively steady, with slight price variations across domestic and imported materials.

Crude oil prices increased by approximately 2%, driven by heightened geopolitical tensions between Russia and Ukraine and potential delays in OPEC+ production increases. Despite weaker global demand, supply disruptions, and geopolitical risks have tightened market conditions.

Indian automakers granted 3-month extension to comply with stricter safety standards for electric construction equipment. New deadline: January 1, 2025.