03 May 2013 09:33 [Source: ICIS news]
LONDON (ICIS)--European toluene contracts for May have been confirmed at $1,155-1,160/tonne (€889-893/tonne), down $15/tonne from the previous month, as the initial settlement received further support from players on Friday.
One consumer confirmed it had settled May volumes at $1,160/tonne, and another buyer later said it had settled several contracts at $1,155/tonne.
A major supplier later confirmed it had settled contracts for this month at both levels, and a second producer this morning said that it had agreed May volumes within that range.
One European supplier said it would not be participating in contract negotiations this month, as it was shutting down its aromatics unit down for maintenance. Further details were not yet available.
European toluene prices were able to resist some of the downward pressure seen across the aromatics sector as crude slumped in April, but some aggressive spot offers on a cost, insurance and freight (CIF) basis did see some lower price sentiment.
One producer said: “It isn’t down as much as we had feared. The bounce in the US market changed sentiment.”
US nitration-grade (n-grade) toluene prices edged back up over the $4.00/gal mark towards the end of April, as more material was being consumed more than expected from blenders and for use in toluene disproportionation (TDP) units to make more benzene.
($1 = €0.77)
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