Europe spot toluene trades at $1,000/tonne

23 April 2008 18:09 [Source: ICIS news]

LONDON (ICIS news)--Spot toluene was heard to have traded in four figures for a second time in as many weeks and for the second time in its history on Wednesday as gasoline found new record highs, despite a purportedly weak market.

A European trader reported selling May loading toluene at $1,000/tonne (€630/tonne) FOB (free on board) Rotterdam, in line with indications seen over the previous two days, with offers talked as high as $1,020/tonne FOB Rotterdam.

A trade had been reported the previous Thursday at $1,010/tonne FOB Rotterdam, $10/tonne higher than the previous record high of $1,000/tonne FOB Rotterdam done on 5 June 2006, as reported by global chemical market intelligence service ICIS pricing.

The reported trade came as gasoline traded at a new record high of $1,015/tonne FOB AR (Amsterdam, Rotterdam) on the back of stock figures from the US Energy Information Administration (EIA), which showed a 3.2m bbl draw on gasoline, some 900,000 bbl more than analysts’ expectations.

Toluene is used as a component of summer blend gasoline but little trading had been seen in April as buyers held off on record high energy prices and economic woes in the US.

“There are buyers out there now,” said one European trader, however. “There are people looking around who were thought to be long and sellers who weren’t there before.”

The trader went on to say more deals were being done than was publicly declared, as buyers did not wish to give the market too much upwards direction.

($1 = €0.63)

For more on toluene visit ICIS chemical intelligence

By: Peter Salisbury
+44 20 8652 3214

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