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)
Follow Truong Mellor on Twitter for daily tweets on the aromatics markets
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|