03 January 2013 15:27 [Source: ICIS news]
LONDON (ICIS)--An initial January toluene contract price range has been agreed at $1,290-1,325/tonne (€980-1,007/tonne), two buyers said on Thursday.
The settlement marks a decrease of $5/tonne on the low end and an increase of $28/tonne on the high end compared to the December contract price, which was agreed at $1,295-1,297/tonne.
The first buyer said it settled in a $1,290-1,310/tonne price range, while the second buyer agreed its January contract at $1,325/tonne.
The first settler said: “On one hand I had a slight decrease of $7/tonne and a slight increase of $13/tonne.I thought it was a tightly balanced market but when I had stuff to sell nobody bought because they had full storage. I thought people would have some room to store but this is obviously not the case - there is enough material around.”
The buyer said it tried to sell 500-1,000 tonnes of toluene in December for early January delivery but “nobody wanted it”.
The second buyer, who settled one of its contracts at $1,325/tonne, said its price moved up because prices are strong in the US, Asia and India.
“My intention was not to let the arb open and the US will stay high,” the second buyer said.
The contract was settled on a free on board (FOB) northwest Europe (NWE) basis. Further confirmation from other players is pending.
($1 = €0.76)
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