US spot toluene-spot benzene spread at 2-year high

HOUSTON (ICIS)–The price spread between US spot benzene and spot toluene widened to a fresh two-year high last week, ICIS analysis showed on Monday.

For the week ended 27 January, spot benzene was valued 90.5 cents/gal more than spot toluene, up from 81.5 cents/gal in the prior week. 

Toluene is used to produce on-purpose benzene through conversion units. Historically, a wide spread between the two aromatics, which favours benzene, has encouraged toluene conversion to benzene.

Spot benzene prices receded in the week ended 27 January following an extended period of steady price gains. The aromatics complex was generally softer last week, but the spread between benzene and toluene widened as toluene prices posted a larger drop than benzene prices.

Spot toluene prices lost ground over the past week as incoming import volumes resulted in looser supply. A 5,000-tonne parcel of BTX (benzene-toluene-xylenes) aromatics was fixed for shipment from northwest Europe to the US Gulf in mid-January. Last week, a 3,500-tonne parcel of toluene was fixed for shipment from northwest Europe to the US Gulf.