02 October 2012 14:23 [Source: ICIS news]
One seller confirmed it had agreed October volumes with its customers at $1,390/tonne, while another producer had settled within the range of $1,385-1,390/tonne. Several buyers also confirmed these numbers.
A sharp increase had been expected for toluene following high spot numbers over the course of September. Demand remains steady, but players agree that it is production problems in Europe that have driven up spot numbers over the month.
One major supplier had previously reduced September contract volumes owing to reduced output, while a force majeure at another producer’s plant further limited availability.
While eastern European producers were now running hard again following the slowdown over the summer period, the majority of volume was being kept within the region, where demand for toluene and xylenes has picked up considerably.
Free on board (FOB) offers were at $1,450/tonne for October, still buoyed by availability restrictions, but several players described the market as dry with no real offers available.
The contracts were settled on a FOB northwest Europe (NWE) basis.
($1 = €0.78)
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