Toluene, mixed xylenes: Latest Europe market developments

Zubair Adam

04-May-2021

LONDON (ICIS)–The market balance for European toluene is much tighter compared with mixed xylenes (MX), with expectations for this trend to continue in the near term.

April supply in general was considered tighter than March, partly linked with lower output due to unexpected plant outages. Consumption for April was considered healthier, outpacing supply.

There was healthy pull from benzene as prices had recently taken off, with adequate requirements for toluene diisocyanate (TDI), and interest in exports to the US.

This supported premiums over Eurobob gasoline prices over the $100/tonne mark, with expectations for a decline once supply improves, and May consumption is similar to April.

Recently there have been unconfirmed reports of European toluene exports being resold back into Europe from India due to the alarming COVID-19 situation.

ICIS Editorial Chart goes here

MX supply changed from snug to long in April, despite production issues.

April MX demand was considered weaker than March, linked with purified terephthalic acid (PTA), which, despite remaining tight, is marred by production, feedstock and transportation issues.

This was noted to have increased paraxylene (PX) stocks, resulting in lower MX consumption. The PTA situation is expected to continue in the short run. These market conditions have kept premiums of MX lower than toluene.

There was low gasoline blending demand, which in May traditionally rises in Europe and the US, envisaged to support premiums at the low end.

ICIS Editorial Chart goes here

The main use of toluene is to make benzene, xylenes, and TDI. It is also used as a solvent.

The isomer-grade xylene is mainly used as a feedstock for PX and orthoxylene (OX) production, while the main application for solvent grade is as a raw material for dye, organic pigment, perfume and medicines, as well as a general solvent for paint and agricultural pesticides.

Focus by Zubair Adam

Thumbnail picture: A refinery in Europe. Toluene is used in the refining  process. Source: Isa Harsin/SIPA/Shutterstock)

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?