Europe May toluene contracts at $1,180–1,190/tonne on gasoline prices

05 May 2011 10:44  [Source: ICIS news]

LONDON (ICIS)--European May toluene contracts have been confirmed at $1,180–1,190/tonne (€791–797/tonne), up $105/tonne from the previous month, as the initial settlement gained further support from players on Thursday.

One seller earlier confirmed it had agreed May volumes at $1,180/tonne, in line with current spot numbers.

On Thursday, another supplier said it had settled May at $1,190/tonne, the increase driven primarily by stronger gasoline prices in Europe as well as the US.

Several buyers also confirmed they had agreed May contracts within this range, adding that volatility seen on crude prices and exchange rates at the end of April had led to some upward global momentum, making negotiations tricky.

Despite thin trading activity, European toluene values have moved up during the past month on the back of firm gasoline-blending interest as well as limited supplies coming into the NWE (northwest Europe) region from Eastern Europe.

Players described the ARA (Amsterdam-Rotterdam-Antwerp) region as balanced to tight, and with prices in the US market approaching the $1,300/tonne mark there was talk of sellers exporting cargo, adding further restrictions to domestic availability.

The contracts were agreed on an FOB (free on board) NWE basis.

($1 = €0.67)

For more on toluene, visit ICIS chemical intelligence

By: Truong Mellor
+44 208 652 3214

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