09 October 2012 12:50 [Source: ICIS news]
BUDAPEST (ICIS)--Continued production restraints and strong derivative demand in eastern Europe are expected to keep toluene availability in the ARA (Amsterdam, Rotterdam, Antwerp) region limited, one distribution source said on Tuesday.
“We have seen one producer cut contract volumes already this year,” the distributor said, speaking on the sidelines of the 46th annual European Petrochemical Association (EPCA) meeting in Budapest.
Additionally, another producer had earlier declared force majeure on feedstock mixed xylenes (MX), further tightening the market.
Free on board (FOB) deals were done as high as $1,450/tonne (€1,117/tonne) in September, as players scrambled to cover positions in what was described by some players as a dry market.
The distributor also said that imports from eastern Europe are being curtailed because of healthy domestic demand from derivative markets there.
The annual EPCA meeting runs from 6-10 October.
($1 = €0.77)
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