How does p-nitrotoluene pricing correlate with upstream toluene costs?

How does p-nitrotoluene pricing correlate with upstream toluene costs?
P-nitrotoluene is produced via nitration of toluene, making toluene the primary feedstock cost driver. China's toluene output reached approximately 16.06 million tons in 2025, up 10.1% year-on-year, supported by downstream demand from new energy battery solvents and biodegradable materials. Toluene export volumes also surged to 1.07 million tons in 2025, valued at USD 723 million, with major destinations including Singapore, South Korea, and Malaysia. This strong export pull can tighten domestic toluene supply, indirectly pressuring p-nitrotoluene production costs. Additionally, p-nitrotoluene serves as a key intermediate for p-nitrobenzoic acid, which is produced via oxidation using permanganate or nitric acid, meaning oxidant prices also influence overall production economics.