04 May 2012 10:49 [Source: ICIS news]
LONDON (ICIS)--May toluene has been confirmed at $1,220-1,230/tonne (€927-935/tonne), down $7-8/tonne from last month, as the initial settlement received further support from players and other contracts were agreed, sources said on Friday.
Following an initial contract agreement for May at $1,230/tonne, other numbers emerged from the market. One buyer confirmed it had agreed contracts at $1,220/tonne, $1,225/tonne and $1,230/tonne, citing a drop in energy values in the second half of April.
“Prices are slightly decreased because of the energy costs,” said the buyer.
Another major supplier confirmed it had settled May volumes at $1,230/tonne earlier this week.
Spot market activity has remained muted over the last month because of restricted supply outside of contractual business, as several eastern European producers remain in turnaround. Softening gasoline values towards the end of April, however, helped put some downward pressure on the market.
“The decrease for toluene was a lot less proportionally to the drop in gasoline,” one of the sellers 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 settlements were agreed on a free on board (FOB) northwest Europe (NWE) basis.
($1 = €0.76)
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