Weak demand pushes Asia toluene down 11%

16 October 2008 08:46  [Source: ICIS news]

SINGAPORE (ICIS news)--Poor demand from key markets in China and southeast Asia, and declining crude values has forced Asian toluene values to fall by 11% on Thursday to levels not seen since December 2005, traders and producers said.

 

Prices plunged to $630-640/tonne FOB (free on board) Korea, $75-80/tonne lower than Wednesday’s close, according to global chemical market intelligence service ICIS pricing.

 

Demand from key markets in China and southeast Asia have slowed drastically with no buyers willing to take further risks or due to slower end-consumer demand, leaving limited outlet for existing stocks held by traders and suppliers, traders said.

 

Offers for H2 November and December loading cargoes steadily fell from $685/tonne FOB Korea at the start of trades to $640/tonne FOB Korea in the afternoon. But such sharp decline in offers also failed to draw buying interest.

 

“If there’s any bid [which is] even low, sellers want to sell,” said a broker.

 

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By: Mahua Chakravarty
+65 6780 4359

< previous article(ICIS Chemical Business podcast November 2, 2009)

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