01 November 2013 10:36 [Source: ICIS news]
LONDON (ICIS)--Initial European toluene contracts for November have settled at $1,020/tonne (€755/tonne) and $1,025/tonne, down $92.50-95.00/tonne from the previous month, several sources confirmed this week.
One major consumer initially reported late on Thursday 31 October it had agreed November volumes at $1,020/tonne. This was followed by news of a settlement at $1,025/tonne between one supplier and several of its customers.
On Friday, another European producer said it had agreed to follow the $1,025/tonne number for its November contracts.
A decrease had been predicted by both buyers and sellers earlier this week, as spot levels saw a sharp drop over the course of October in line with global aromatics losses and weakening oil and energy costs.
Buying interest from the gasoline blending sector was assessed around the $1,000/tonne level, given recent FOB AR (Amsterdam-Rotterdam) gasoline prices in the low $900s/tonne.
Spot offers have held around the $1,050/tonne, so the November contracts heard so far appear to be around the midpoint of the buy/sell range.
However, US toluene pricing saw a midweek upturn, with offers moving as high as $3.85/gal before easing off slightly. There was also talk of a European spot deal done at $1,040/tonne, with one seller also noting renewed buying interest for toluene coming from the Middle East.
“With US prices dropping in October, this would have meant TDP (toluene disproportionation) economics were positive again and helped demand,” one seller said.
($1 = €0.74)
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