Feb toluene imports to China fall 47% on price gap

27 March 2008 11:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Toluene imports into China for February dropped 47% compared with the same month in 2007 due to the Lunar New Year holidays and a gap between domestic China and benchmark Korea prices, said traders on Thursday.

Figures released by China Customs showed that February’s toluene imports were at 20,115 tonnes compared with 37,690 tonnes imported a year ago.

The estimated average monthly imports of toluene into China, the largest importing nation in Asia, were about 40,000-50,000 tonnes.

Buying indications on a CFR (cost and freight) basis were at par or lower than FOB (free on board) Korea prices as Chinese domestic market prices have been largely stable in the past few weeks, traders added.

On 29 February, following the new year holidays, FOB Korea prices were assessed at $970-990/tonne while on a CFR NE Asia (northeast Asia basis prices were at $960-975/tonne, according to global chemical market intelligence service ICIS pricing.

Poor downstream demand was capping demand in the region, said a south China-based trader.

Some Chinese factories were reported to be shut down or operating at lower levels due to new labour and environment regulations imposed by the government, said another trader.

Inventory levels have remained comfortable in the past few months, with Chinese producers supplying comfortably to the local markets, said traders.

Asia toluene was $20/tonne higher than last week’s close at $1,020-1,030/tonne FOB Korea. In eastern China, prices were assessed almost flat compared with the past week at yuan (CNY) 8,400-8,500/tonne ($1,195-1,209/tonne) ex-tank.

($1 = CNY7.03)

For more on toluene visit ICIS chemical intelligence

By: Mahua Chakravarty
+65 6780 4359

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