30 April 2010 09:34 [Source: ICIS news]
By Mahua Chakravarty
SINGAPORE (ICIS news)--The Asian toluene market is likely to remain subdued in the coming weeks as a high inventory of the material in China – the region’s largest market – will keep its import demand soft, industry sources said on Friday.
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"It could take about two to three months before stocks can go down," said an east China-based trader.
Toluene stocks reached record-high levels in
"The normal stock levels in east
Throughout April, there was a lack of trading in Asia on cargoes based on FOB (free on board)
"It’s hard to see any demand these days, [as] stocks have to decrease so that demand can come up," he added.
Given the challenge of finding find tank space in
Spot toluene prices were fluctuating at $30/tonne (€23/tonne) range in the past four weeks, with values hovering at $885-915/tonne. Sellers were wary that the current poor demand and high regional supply would push toluene prices lower.
Imports of spot materials into
Local sales of imported material in the domestic market were sluggish for the product, more due to high supply than any slowdown from the downstream solvents sector, local traders said.
A south China-based importer said: "Demand is normal but inventory is too high, so buyers are taking a wait-and-see stance and this is pushing down local prices slowly."
($1 = €0.76/$1 = CNY6.83)For more on aromatics visit ICIS chemical intelligence
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