Toluene market in Italy

Earlier Report Observations

From 2018 to 2020, Italy's toluene production volume decreased from 152.9 Kt to 137.1 Kt, yet the domestic market volume expanded from 57.5 Kt to 80.0 Kt, driven by a reduction in exports and higher imports. Regulatory actions influenced this period: the implementation of European directives (2005/59/EC and 2005/69/EC) limited toluene use in consumer products like adhesives and paints to 0.1% by mass, potentially dampening domestic demand. Concurrently, the 2020 update of occupational exposure limits for chemical agents increased compliance costs, contributing to the notable decline in production value from $109.4 million to $55.0 million.

In the years 2021 to 2024, trade patterns shifted as imports remained steady between 13.8 Kt and 16.7 Kt, while exports fell sharply from 90.3 Kt in 2021 to 44.5 Kt in 2023. This export contraction aligned with broader industry pressures, including international geopolitical tensions and the expansion of Italy's Emissions Trading System (ETS), which affected the hydrocarbon sector and altered trade flows. Additionally, 2022 regulations on managing toluene-containing industrial waste introduced new operational requirements for handlers.

Throughout the period, the market operated under consistent European and national rules restricting hazardous substance use, with evolving environmental policies such as ETS quota reductions and waste management rules shaping the industry's cost structure and trade dynamics.

Production toluene in Italy

In value, 2017-2020, M $ US

Italy's toluene production declined for the second consecutive year. In 2020, output was valued at 55.0 M $ US, marking a 37.6% decrease compared to 2019. Over the 2018-2020 period, production fell by 49.7%, with a compound annual growth rate (CAGR) of -20.5%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, K t

In 2020, Italy produced 137.1 K t of toluene, representing a 3.7% increase from 2019. However, over the 2018-2020 period, production decreased by 10.4%, with a CAGR of -3.6%. The lowest production level was recorded in 2019 at 132.2 K t, which saw the largest decline of 13.6% that year.

Annual dynamics of production in Italy in kind, 2017-2020, K t

Exports toluene from Italy

Exports in kind, K t

Italy's toluene export volumes declined for the second consecutive year. In 2020, exports totaled 71.7 K t, showing a slight decrease of 0.8% from 2019. Between 2017 and 2020, exports fell by 12.5%, equating to an annualized rate of -4.4%. The peak was in 2018 at 106.5 K t, which also saw the largest increase of 30.1%. The most significant decline occurred in 2019, dropping by 32.2%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K t

From 2017 to 2020, Belgium (34.0% of exports in kind), the Netherlands (26.4%), and the United States (24.8%) were the core destinations for Italy's toluene exports, collectively accounting for 85.3% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, K $ US

Italy's toluene export values declined for the second consecutive year. In 2020, exports were recorded at 26 321 K $ US, reflecting a sharp 45.0% drop compared to 2019. Over the 2017-2020 period, exports decreased by 44.9%, with a CAGR of -18.0%. The highest value was in 2018 at 74 727 K $ US, which also experienced the largest increase of 56.5%.

Annual dynamics of product's exports from Italy in value, 2017-2020, K $ US

During 2017-2020, Belgium (29.7% of exports in value terms), the Netherlands (26.6%), and the United States (25.9%) were the principal destinations for Italy's toluene exports by value, jointly making up 82.3% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports toluene to Italy

Imports in kind, K t

Italy's toluene imports increased for the second consecutive year. In 2020, imports reached 14.6 K t, up 7.9% from the previous year. Between 2017 and 2020, imports grew by 17.2%, with an annualized rate of 5.4%. The lowest level was in 2018 at 11.0 K t, which saw the largest decline of 11.4%. The most significant increase occurred in 2019, rising by 22.5%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K t

Throughout 2017-2020, Slovakia (32.0% of imports in kind), Czechia (19.8%), and Spain (17.6%) formed the core sources for Italy's toluene imports, together accounting for 69.5% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, K $ US

After two years of growth, Italy's toluene import values declined. In 2020, imports amounted to approximately 8 223 K $ US, a 19.5% decrease from 2019. Between 2017 and 2020, imports fell by 5.5%, with an annualized rate of -1.9%. The peak was in 2019 at 10 209 K $ US, which also saw the largest increase of 13.4%.

Annual dynamics of product's imports to Italy in value, 2017-2020, K $ US

Over 2017-2020, Slovakia (32.9% of imports in value terms), Czechia (19.1%), and Spain (17.0%) led as the top suppliers of toluene to Italy, with their combined share reaching 68.9% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020