Aromatic and aliphatic solvents

US aromatics and aliphatics solvents prices were mixed in the past three months. Toluene and xylene prices reached record high levels not seen since 2008, while aromatics 100 and 150 prices were mostly stable.

Toluene and xylene prices dipped slightly in early December, but rebounded on the back of spot barge prices and tight supply. The increase in toluene and xylene continued into the first quarter of 2013 on the back of continued tight supply conditions for aromatics.

Prices for aromatics 100 and 150 in the US Gulf and the Midwest were mostly stable from November through to late January because of a seasonal downturn for those products. Both grades began to move up again in early February.

US aromatics demand is expected to remain strong heading into March and April, as demand from blenders picks up ahead of the US summer driving season. Price direction for the toluene and xylene truck and rail market is also largely dependent on the spot barge market.

Trade participants also said demand for aromatics 100 and 150 is also expected to pick up on seasonal demand.

Updated to mid-February 2013