Asia benzene, toluene fall for 2nd consecutive day

25 July 2007 10:39  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian benzene and toluene prices fell $10-20/tonne for the second consecutive day due to lower US benzene and crude, said traders and a producer on Wednesday.

 

The fall in US crude, gasoline and benzene prices were the main factors driving the downward trend, they added.

 

Also exerting downward pressure on toluene were high supply in Asia and poor demand from China, a producer said.

 

Benzene prices have fallen $15-20/tonne (€11-15/tonne) since last Friday and toluene prices have fallen $30-35/tonne during the same period.

 

Benzene prices were pegged at $1,005-1,020/tonne FOB (free on board) Korea, $5-10/tonne lower than Tuesday’s closing level.

 

Trading was active for forward month cargoes as a deal was heard at $1,010/tonne FOB Korea for big berth any September loading and another deal was reported at $1,018/tonne FOB Korea.

 

A big berth October shipment parcel was also reported sold at $1,020/tonne FOB Korea.

 

Toluene prices saw more substantial losses and were pegged at $805-820/tonne FOB Korea, $15-20/tonne lower.

 

A deal was reported at $815/tonne FOB Korea for any September.

 

US West Texas Intermediate (WTI) for September delivery lost $1.94/bbl overnight and was pegged at $72.95/bbl on the NYMEX, due to speculative selling after OPEC voiced concerns that high oil prices could slow down the global economy.

 

In the US, July benzene bid and offers were at $3.53-3.56/gal FOB (free on board) HTC (Houston-Texas City), below the previous day’s range of $3.65-3.70/gal FOB HTC.

 

August benzene also lost ground and was at $3.58-3.63/gal FOB HTC, down from $3.60-3.65/gal FOB HTC on Monday.

 

US July nitration-grade toluene was at $3.06-3.08/gal FOB HTC, in a tighter range from last Friday’s range of $3.05-3.10/gal FOB HTC.

 

($1 = €0.72)

By: Mahua Chakravarty
+65 6780 4359

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