US aromatics drop on falling demand, crude oil

07 October 2008 20:08  [Source: ICIS news]

HOUSTON (ICIS news)--Falling crude oil prices and weaker demand prompted at least one producer and a reseller to drop spot xylene and toluene prices by 2 cents/lb ($44/tonne, €33/tonne), the reseller said on Tuesday.

US Gulf toluene and xylene prices were from the high 50s to mid 60s cents/lb, according to global chemical market intelligence service ICIS pricing.

Until recently, crude oil price strength was sufficient to lift aromatic solvents - including xylene and toluene - even after the US peak driving-season had ended.

Hurricanes Gustav and Ike also provided price support for aromatics after the storms produced widespread platform evacuations and production shutdowns.

However, as crude oil prices continued to weaken and the seasonal drop in aromatic solvents demand kicked in, sellers were under increasing pressure from buyers to adjust prices.

US aromatic solvents producers include Citgo, ExxonMobil, Flint Hills Resources, Sunoco and Total.

($1 = €0.74)

For more on toluene visit ICIS chemical intelligence
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By: Gene Lockard
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