China’s toluene buying interest strengthens on crude

13 October 2009 09:16  [Source: ICIS news]

SINGPAPORE (ICIS NEWS) – Toluene buying enquiries have increased from China as strong crude values boosted sentiment, but bullish selling indications have capped transaction volumes, industry sources said on Tuesday.

Buyer confidence had been firming since last Friday when traders started negotiating November cargoes more actively, Asian traders said.

But the wide gap in buy-sell ideas had hindered trade, regional brokers said. On Tuesday morning, offers were pegged at $760-770/tonne (€516.80-523.60) CFR (cost and freight) China, against bids at $745-750/tonne CFR China for any November loading.

Prior to the holidays, volatile energy values had dampened market sentiment, and buyers were generally reluctant to book new cargoes.

China market reopened last Friday with buy-sell indications cited at $715-740/tonne CFR China, according to global chemical market intelligence service ICIS pricing.

Key toluene producers in Asia include SK Energy, Yeochun NCC (YNCC) and Honam Petrochemical in South Korea, and Sumitomo Chemical and Idemitsu Petrochemical in Japan.

($1= €0.68)

By: Ong Sheau Ling
+65 6780 4359

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