Possible price hikes ahead for US aromatics

14 June 2006 00:19  [Source: ICIS news]

HOUSTON (ICIS news)--Recent price relief in the gasoline market might not be enough to prevent US aromatics suppliers from raising the price of octane boosters in upcoming weeks, producers said on Tuesday.

There have been several price increases for toluene, xylene and other octane enhancers so far this year during the phase-out of methyl tertiary butyl ether (MTBE). However, continued tightness in feedstocks and the wide differential between premium and regular gasoline are creating difficulties for blenders.

“As government regulations have forced us to move away from MTBE, blenders have become frustrated with the high costs of alternative octane boosters,” a Gulf Coast producer said. “From a blend value perspective, there’s been some relief, but if premium gasoline prices don’t come off more, we’ll have to have another price increase (for toluene and xylene) next month.”

A Midwest producer agreed that an increase in the cost of aromatics is looking more likely.

“Gasoline prices have come off little, but the premium for premium is making things difficult for distillers. You can’t just take away MTBE and expect everything to fall into place,” the producer said.

Gulf Coast spot toluene and xylene prices for the week ended 13 June ranged between 44-46 cents/pound, according to information from global chemical market intelligence ICIS pricing.

North American aromatics producers include Citgo, ExxonMobil, Flint Hills Resources, Sun and Tauber. North American aromatics distributors include Ashland, Brennan, Conchemco, Hydrite, and Superior Solvents.

By: Gene Lockard
1 713 525 2653

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