Asia's benzene, toluene prices fall $40-45/tonne

20 July 2007 15:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s benzene and toluene prices have fallen $40-45/tonne within the past week due to lower gasoline and US values, said traders and producers on Friday.

 

Benzene prices on Friday were assessed at $1,025-1,035/tonne FOB (free on board) Korea, $40-45/tonne lower than last week’s close. Toluene prices also saw a similar fall of $40/tonne week on week and were assessed at $840-850/tonne FOB Korea, according to global chemical market intelligence service ICIS pricing.

 

The downward trend was in line with lower gasoline values seen this week and weaker US benzene and toluene values, traders and producers said.

 

Meanwhile, 95-octane gasoline values in Asia were pegged at $85.50/bbl on Thursday’s close, down $1.40/bbl from a week ago.

 

August benzene prices in the US were pegged at $3.71-3.76/gal FOB HTC (Houston-Texas City) overnight Thursday, lower than Wednesday’s prices at $3.72-3.78/gal FOB HTC.

 

July n-grade toluene prices in the US overnight Thursday were at $3.07-3.08/gal FOB HTC, down from Wednesday’s level of $3.15-3.20/gal FOB HTC.

 

Benzene and toluene prices are traditionally known to track US market prices, especially during the US summer driving season from May until August. Another factor that ensured bearish sentiment in the Asian benzene and toluene markets was high supply, traders and producers said.

 

Supplies of toluene within the region were high as demand from the key Chinese market remained poor, producers said.

 

Chinese importers of toluene said in support demand from the downstream solvent segment was poor as a number of factories in the eastern province of Jiangsu were shut down following the recent pollution problems at a lake there. Also, offers from local producers were heard to be lower than those for imported material, further slowing down trades, said importers.

 

The high supply of benzene and bearish expectations for the forward months of September and October could have led traders to liquidate positions, said a trader. A flurry of deals were heard from mid-week for those months.

 

On Wednesday, about seven cargoes of benzene were heard changing hands for big berth September loading at $1,035-1,043/tonne FOB Korea and for October shipment at $1,030/tonne FOB Korea. Three more deals for big berth September cargoes were heard by Friday at $1,030-1,040/tonne FOB Korea.

By: Mahua Chakravarty
+65 6780 4359

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