Asia toluene hits 15-week high on active Chinese buying

06 June 2014 10:57 Source:ICIS News

SINGAPORE (ICIS)--Spot toluene prices in Asia climbed to a 15-week high on the back of active buying activity by the Chinese traders amid higher domestic numbers, market players said on Friday.

On 6 June’s close, prices were assessed as $1,080-1,100/tonne FOB (free on board) Korea, which was a cumulative increase over four straight days of nearly $30/tonne, according to ICIS.

Four August fixtures were bought by Chinese traders on 6 June at $1,092-1,097/tonne FOB Korea, while a July cargo was traded at $1,087/tonne FOB Korea, ICIS reported.

Chinese sentiment improved in late week, as several local traders expect prices to continue to stay strong moving forward on the start-up of new paraxylene (PX) units.

“Prices just rallied with the Chinese traders’ speculation,” said a Singapore-based trader, adding that the price gain was in spite of an increase in inventories to close to 130,000 tonnes as of 5 June, a 25% rise from the previous week.

On the Chinese import front, a second-half June cargo was booked at $1,112/tonne CFR (cost and freight) China, LC (letter of credit) 90 days on 6 June, traders said.

Domestic prices in east China were assessed as yuan (CNY) 8,025-8,075/tonne ex-tank, CNY125-150/tonne higher week over week, according to ICIS China.

By Ong Sheau Ling