Initial Europe December toluene contract agreed at $1,297/tonne

03 December 2012 09:32  [Source: ICIS news]

LONDON (ICIS)--An initial December toluene contract was agreed at $1,297/tonne (€999/tonne), down $28-38/tonne from last month’s settlements, one buyer confirmed on Monday.

Spot pricing has started to ease as the year-end approaches and players begin inventory management. While demand has been seasonally weak, there have been concerns about the availability of toluene di-isocyanate (TDI) grade material which have helped support selling indications throughout November.

Buyers in the spot market have moved below the $1,300/tonne level, while sellers remain above it, with one trader pegging offers as high as $1,340/tonne still. However, continued illiquidity in Europe has left it hard to understand where the market should be valued.

The contract was settled on a free on board (FOB) northwest Europe (NWE) basis. Further confirmation from other players is pending.

($1 = €0.77)

By: Truong Mellor
+44 208 652 3214

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