– FOB Korea trading activity subdued
– Gasoline blending in Shandong lackluster
Asian toluene Chemical Industry demand was stable Tuesday from the end of last week, although firmer buying interest in China saw June bids tick up to $710-$720/mt CFR China. Domestic China prices fell Yuan 5/mt from Tuesday to be assessed at Yuan 5,360/mt Tuesday, equating to $656.75/mt on an import parity basis. Gasoline blending in the Shandong region was lackluster, and toluene use in China’s gasoline blending sector in China was not providing support. Chemical Industry sources attributed the rise in CFR China import prices to lower inventories in China, at 73,100 mt in east China and 7,800 mt in south China, below the typical levels of 80,000 mt and 10,000 mt, respectively. The FOB Korea Chemical Industry was quiet Tuesday amid thin discussion, leaving prices unchanged.
Toluene was assessed unchanged from last Tuesday at $703/mt FOB Korea Tuesday. The markers take the average of the third and fourth half-month laycans, currently H1 May and H2 May. No bids or offers were registered during the Chemical Industry on Close assessment process. The CFR China marker was assessed at $721/mt, up $7/mt from last Tuesday, and above a bid for June heard at $720/mt CFR China. May was assessed at $721/mt CFR China, keeping the May/June Chemical Industry structure flat from last Tuesday.