Taiwan’s CPC sells 9,000 tonnes toluene and 5,000 tonnes IX

07 May 2012 05:47  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s CPC has sold via tender, 9,000 tonnes toluene and 5,000 tonnes of isomer-grade xylene (IX) for May loading on 4 May, a source familiar with the matter said on Monday.

The state-owned company sold toluene in three 3,000-tonne lots not higher than $1,150/tonne (€874/tonne) FOB (free on board) Kaohsiung, the source said.

One cargo of 3,000 tonnes was for first-half May loading and the other two cargoes of 6,000 tonnes were for second-half May loading.

CPC’s toluene sell-tender, issued on 2 May following a delay in restart of its TDP (toluene disproportionation), paraxylene (PX) and orthoxylene (OX) units at Kaohsiung, was for the sale of up to 6,000 tonnes of May loading shipments.

The company sold an additional 3,000 tonnes of toluene because of mounting inventory pressures, market sources said.

Bids and offers for June loading toluene were heard on Monday morning at $1,180-1,190/tonne FOB Korea or $20-25/tonne lower than 4 May following sharp drops in Brent crude futures.

Meanwhile, CPC also sold 5,000 tonnes of second-half May loading IX at an undisclosed price according to a company source.

CPC had issued a tender on 2 May to sell up to 20,000 tonnes of May and June loading IX.

“There were too few bids and the price was not suitable,” the company source said explaining why CPC did not award the balance 15,000 tonnes of IX it had initially planned to sell.

The company source declined comment on the transaction price.

Offers for June loading IX stood at $1,240-1,245/tonne FOB Korea on Monday morning or $20-25/tonne lower than last Friday because of declines in crude futures.

($1 = €0.76)

By: Bohan Loh
+65 6780 4359

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