30 July 2010 07:16 [Source: ICIS news]
By Mahua Chakravarty
Supply glut had kept toluene prices in
On Friday, spot prices were at $750-760/tonne (€570-578/tonne) FOB (free on board)
Prices had been stuck in the $720-760/tonne FOB
There was a drastic slowdown in demand from
Inventory levels in eastern
But demand did not pick up this year due to the competitive pricing of alternative blendstocks like methyl tertiary butyl ether (MTBE) - at $740-745/tonne FOB
As a result, spot demand for toluene imports had slowed down but supply was persistently high from countries like
“There is no change in the situation, and since May there is a continuous oversupply,” the distributor added.
Consequently, distributors in
Due to high stocks, ex-tank prices have hovered in the Rs38-40/kg ($818-861/tonne) range for the past few weeks and demand has been subdued.
“I don’t think the market situation will improve [in the second-half of 2010],” said a Korean trader while a Japanese trader said: “Fundamentals of toluene are likely to remain weak.”
($1 = €0.76 / $1 = Rs 46.48)
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