02 May 2012 16:43 [Source: ICIS news]
LONDON (ICIS)--An initial May toluene contract has been agreed at $1,230/tonne (€935/tonne) this afternoon by one supplier, within the range for settlements agreed for April, but a $5/tonne decrease for the producer involved.
Other settlements were said to have been made within a range of $1,220–1,230/tonne but further confirmation from other players is pending.
The spot market has remained fairly inactive because of restricted supply outside of contracted volumes, as several eastern European sellers remain on turnaround.
However, softening gasoline values towards the end of April helped put some downward pressure on the market.
“The decrease for toluene was a lot less proportionally to the drop in gasoline,” the seller explained. “My view was that it was more a case for a rollover, but with more settlements emerging with reduction it was difficult to support.”
The settlement was agreed on a free on board (FOB) northwest Europe (NWE) basis.Two initial April toluene contracts were agreed at $1,235/tonne and $1,238/tonne FOB NWE. April contracts were confirmed at $1,227–1,238/tonne FOB NWE.
($1 = €0.76)
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