Asia’s toluene market hushed amid weak sentiment

24 July 2007 09:10  [Source: ICIS news]

SINGAPORE (ICIS news)--Activity on Asia’s toluene markets was subdued and prices were steady on Tuesday due to the fall in US aromatics prices and a poor Chinese market, producers and a trader said.

Indications were limited during the day, with offers heard for any September cargoes at $845/tonne FOB (free on board) Korea against bids at $820-835/tonne FOB Korea. Prices were notionally assessed stable from Monday’s closing level at $835-845/tonne FOB Korea, according to global chemical market intelligence service ICIS pricing.

A key producer said that Asian traders were searching for clearer direction as the toluene market in the US was soft. Overnight Monday, July nitration-grade material traded at $3.07/gal DDP (delivered, duty paid) HTC (Houston, Texas City), within Friday’s range of $3.05-3.10/gal FOB HTC.

A Korean trader said that high supply in Asia and poor demand from downstream segments in China also contributed to the slowdown in trading.

A producer said that inventory levels in China were high, which was also dampening market sentiment. A trader estimated inventory levels in eastern China to be about 65,000-70,000 tonnes, around 10,000 tonnes lower than two weeks ago.

By: Mahua Chakravarty
+65 6780 4359

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