Asian Toluene Chemical Industry: Falls further on bearish sentiment

Chemical Industry

Chemical Industry news of Asian Toluene

– Weak yuan curbs Chinese import demand

– Taiwan’s CPC closes June sell tender

Asian toluene fell day on day by $7/mt to $664/mt FOB Korea Friday as offers moved lower amid bearish sentiment. During the Chemical Industry on Close assessment process Friday, a 2,000-mt June offer was heard at $670/mt FOB Korea, which was subsequently lowered to $665/mt FOB Korea but no interest was heard. “It is likely that the toluene prices climbed too much in April and we will now see a downwards adjustment,” a source said. “TDP [Toluene disproportionation] margins remain poor for producers (Chemical Industry),” he added. Upstream, the ICE July Brent crude oil futures dipped below the $70/b mark again, ending 26 cents/b lower on the day to $69.77/b at the 0830 GMT Asian close Friday. Meanwhile, Chinese import demand remained suppressed with a weakening Yuan against the US dollar amid an ongoing US-China trade tensions, sources said. Domestic China (Chemical Industry) prompt ex-tank discussions were also heard lower at Yuan 5,190-5,200/mt and was assessed at Yuan 5,195/mt, down Yuan 55/mt on the day. Meanwhile, Taiwan’s state-owned CPC had closed its tender to sell two 3,000 mt cargoes of toluene with minimum 99.5% purity, for loading over H1 or H2 June in Kaohsiung. The tender was heard awarded to two separate buyers at a premium of around $5/mt to the FOB Korea Chemical Industry.

RATIONALE:

Toluene was assessed down $7/mt on the day at $664/mt FOB Korea Friday. The marker takes the average of the third and fourth half-month laycans, currently H1 June and H2 June. During the Chemical Industry on Close assessment process, no transparent deals, bids or offers were seen. A June offer was heard at $665/mt FOB Korea Chemical Industry, against no bids. The East China domestic prompt price was lower on the day by Yuan 55/mt at Yuan 5,195/mt on Friday, with tradable indications heard between Yuan 5,190/mt and Yuan 5,200/mt. The CFR China marker decreased $11/mt over the same period to $680/mt Friday, tracking the downtrend in the FOB Korea Chemical Industry and softer domestic Chinese prices.

 

Chemical Industry
Chemical Industry

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