Toluene Methodology

ICIS pricing quotes toluene in Europe, Asia-Pacific, China and the US Gulf.

Frequency:

• Toluene Daily (Asia) reports published from Mondays to Fridays
• Toluene weekly (Europe, Asia-Pacific and the US) reports published on Fridays
• Real time Price Alert Service (PAS) delivering market news and trends throughout the day.
• BTX (China) weekly report published on Fridays.

TOLUENE (EUROPE)

Weekly Price Assessments:

Toluene Monthly Contract Prices

• FOB NWE (USD/MT & conversion to USD/GAL)

Toluene Spot Prices

• FOB RDAM (+) (USD/MT & conversion to USD/GAL)
• FOB RDAM (*) (USD/MT & conversion to USD/GAL)
• CIF MED (*) (USD/MT & conversion to USD/GAL)

NOTE: (+) represents the price range for the week

(*) represents the price range at Friday close

Toluene (ASIA-PACIFIC)

Daily Price Assessments:

Toluene Spot Prices

• FOB Korea (USD/MT & conversion to USD/GAL)
• EAST CHINA EX-TANK (CNY/MT & conversion to USD/GAL)
• INDIA EX-TANK (INR/KG & conversion to USD/GAL)

Weekly Price Assessments:

Toluene Spot Prices

• FOB KOREA (*) (USD/MT & conversion to USD/GAL)
• CFR N.E.ASIA (*) (USD/MT & conversion to USD/GAL)
• CFR S.E.ASIA (*) (USD/MT & conversion to USD/GAL)
• E.CHINA EX-TANK (*) (CNY/MT & conversion to USD/GAL)
• CFR INDIA (*) (USD/MT & conversion to USD/GAL)
• CFR CHINA (*) (USD/MT & conversion to USD/GAL)
• INDIA EX-TANK (*) (INR/KG & conversion to USD/GAL)

Toluene Spot Prices

• FOB KOREA (+) (USD/MT & conversion to USD/GAL)
• CFR N.E.ASIA (+) (USD/MT & conversion to USD/GAL)
• CFR S.E.ASIA (+) (USD/MT & conversion to USD/GAL)
• E.CHINA EX-TANK (+) (CNY/MT & conversion to USD/GAL)
• CFR INDIA (+) (USD/MT & conversion to USD/GAL)
• CFR CHINA (+) (USD/MT & conversion to USD/GAL)
• INDIA EX-TANK (+) (INR/KG & conversion to USD/GAL)

NOTE: (+) represents the price range for the week

(*) represents the price range at Friday close

BTX (CHINA)

Weekly Price Assessments:

Toluene Spot Prices

• E. CHINA EX-TANK (*) (CNY/MT)

NOTE: (*) represents the price range at Friday close

Toluene (US GULF)

Weekly Price Assessments:

Toluene Commercial Grade Spot Prices

• FOB BARGES (+) (USD/GAL & conversion to USD/MT)
• FOB BARGES (*) (USD/GAL & conversion to USD/MT)

Toluene Nitration Grade Spot Prices

• FOB BARGES (+) (USD/GAL & conversion to USD/MT)
• FOB BARGES (*) (USD/GAL & conversion to USD/MT)

NOTE: (+) represents the price range for the week

(*) represents the price range at Friday close

General Information:

Assessment window:

Weekly assessments are based on information supplied by market participants through the week to close of business on Fridays at 1700 hours in London, Houston (US central time) and China (Beijing time), and 1730 hours in Singapore.

Daily assessments in Asia are based on information gathered throughout the day to close of business at 1730 hours in Singapore.

Specification:

ICIS pricing quotes toluene conforming to ASTM D-841. China domestic prices are defined by products conforming to either ASTM D-841 or GB 3406-90. The European contract quote is for TDI grade based on Toluene with 99.9% purity.

Timing:

Cargoes loading or delivered four-six weeks forward from the date of publication, except in Asia. For Asia-Pacific, the assessment window is up to six weeks forward from publication date for the spot price table. The half-month FOB Korea price table includes cargoes loading from 0 to 12 weeks forward from the date of publication. China domestic market price quotes refer to cargoes loading within ten days from the date of publication.

Terms:

30-60 days after bill of lading date. For the CFR N.E.Asia, CFR China, CFR S.E.Asia and CFR India quotes, credit terms of up to 90 days are applicable. For China domestic markets, payment is made at sight. For India domestic market, credit terms of up to 90 days are applicable.

Standard cargo size:

1,000 tonnes in Europe, 2,000 tonnes in Asia. In the US, waterborne volumes of at least 10,000 bbls. In China domestic markets, spot prices are assessed for cargo sizes of 20-300 tonnes for East China. In India domestic market, spot prices are assessed for cargo sizes varying from 50-600 tonnes.

Assessment basis:

Where the weekly reports include both the week’s spread and Friday close prices, these are quoted separately. The price spread for the week is shown as (+) and represents deals done. Deals done after the Friday close will be included in the following week's report. The price spread at Friday close is shown as (*) and represents the bid/offer range at the Friday deadline.

The ICIS Asia-Pacific and China toluene weekly prices are assessed both (*) at the end of the week up to Friday close, due to the volatile nature of the market, and the ICIS Asia-Pacific toluene weekly prices (+) are based on the whole week’s deals and discussion levels.

The published ranges represent a combination of the following price indications: the deals concluded, bids and offers, buy and sell indications and notional discussions.

In the absence of deals, assessments based on bids and offers will be made to accurately reflect the levels at which business would probably have taken place during the week or at the Friday close of business. Factors affecting price movements, including the supply and demand situation, plant operating rates, feedstock and derivative markets, cargo movements, and general sentiment, will also be taken into account.

China domestic price quotes refer to ex-tank prices in East China. East China prices cover Zhangjiagang, Jiangyin and Ningbo.

India domestic price quotes refer to ex-tank prices in the Western India ports of Kandla and Mumbai.

In the US, commercial grade toluene is generally less actively traded, thus this price band may be calculated on a discounted basis to active nitration-grade values for the week.

All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.

The Toluene Daily (Asia) report covers spot assessments on an FOB Korea, East China ex-tank, and India ex-tank basis. The assessments take into account deals, bids and offers, and price ideas heard throughout the day.The half-month price table (below the spot price table) includes assessments for prompt and forward month cargoes. In the absence of deals or firm discussions in the market, the assessment would be based on the backwardation or contango with the preceding or following months. For example, if no prices are heard for August loading cargoes, the assessment would be based on the backwardation or contango with July and/or September.

24 July 2012