Europe/US toluene arbitrage open as prices firm

28 July 2006 15:35  [Source: ICIS news]

LONDON (ICIS news)--The price differential between Europe and the US toluene has left the arbitrage wide open, as spot prices remained firm in both regions this week, market sources said on Friday.

A shipment of 8,000 tonnes of toluene from Rotterdam to the US Gulf for end of July was fixed with a freight rate at $48/tonne. 

There was also an enquiry for 3,000-5,000 tonnes of material from Rotterdam to the US Gulf for 1-10 August lifting.

On Friday, spot N-grade toluene in the US was valued close to $1,060/tonne free on board (FOB) US Gulf.

August spot toluene prices in Europe were quoted at $960-980/tonne FOB Rotterdam.

Spot toluene prices were supported by gains in the US and a jump in the value of gasoline. The situation in the Middle East was also impacting on market sentiment, said observers.

In the US, refiners were starting to use more toluene than xylene to hold down costs, subsequently narrowing the price spread between toluene and xylene.

By: Julia Meehan
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly