Europe toluene falls to 2005 lows

22 October 2008 18:14  [Source: ICIS news]

LONDON (ICIS news)--European toluene values were at lows not seen since 2005 as gasoline and crude oil values fell and fears grew over forward demand, market participants said on Wednesday.

“Demand is terrible,” said one toluene trader. “It will have to go to [the value] of gasoline.”

A firm October offer was heard at $585/tonne (€445/tonne) FOB (free on board) Rotterdam while a first-half November parcel was also being offered at $575/tonne FOB Rotterdam, according to global chemical market intelligence service ICIS pricing. 

These were the lowest values recorded by ICIS pricing since the week ended 9 December 2005 when trading was seen within a $555-587/tonne FOB Rotterdam range.

As toluene found lows in the $500s/tonne, gasoline was trading at  $542-546/tonne FOB AR (Amsterdam Rotterdam).

Toluene is a blending component of gasoline, with demand traditionally higher in the summer, according to market participants, and the spread between the two markets seen as an indicator of demand for toluene.

A spread of $30-40/tonne between the two has been seen as a historical norm, according to market participants. The last offer heard was $2/tonne lower than the day’s highest gasoline trade.

($1 = €0.76)

For more on toluene visit ICIS chemicals intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Peter Salisbury
+44 20 8652 3214

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