NewsFlashEurope toluene trades at $1,100/t high

20 May 2008 18:32  [Source: ICIS news]

LONDON (ICIS news)--A spot toluene deal was done at the symbolic $1,100/tonne (€704/tonne) mark on Tuesday - a new record high - as energy complex values continued their upwards march.

A European trader reported the sale on a CIF (cost, insurance and freight) Rotterdam for June loading basis, citing gasoline values as a major contributing factor.

The buyer, another trader, could not be reached for comment at the time of writing.

The previous record high set on spot toluene was $1,075/tonne on 9 May.

NYMEX light sweet crude futures gained more than $2/bbl on Tuesday to take the front-month June contract, which was due to expire on the same day, to a new record high above $129/bbl on a dip in the US dollar and strong distillates prices.

At the same time, offers as high as $1,095/tonne FOB (free on board) AR (Amsterdam, Rotterdam) were heard for gasoline.

Toluene is a blending component of US summer blend gasoline.

Bids and offers for FOB toluene were talked up to $1,110-1,130/tonne FOB Rotterdam at the same time for both May and June loading.

“There was a June gasoline offer at $1,095/tonne this afternoon, and the HDA [hydrodealkylation route to benzene production] margin is up and looking more attractive,” said one trader. 

“With gas just running away and HDA opportunities, we will see more buyers, even at these numbers.”

Bids and offers had topped $1,100/tonne FOB Rotterdam at the end of last week, with a $1,103/tonne FOB Rotterdam deal rumoured at the same time. 

($1 = €0.64)

For more on toluene visit ICIS chemical intelligence

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