Asian Toluene Chemical Industry: Rebounds as domestic China prices strengthen

Chemical Industry

Chemical Industry news of Asian Toluene

– Domestic prices rise Yuan 70/mt on day

– CPC issues June sell tender

Asian toluene prices rebounded Wednesday, rising $6/mt day on day to be assessed at $674/mt FOB Korea, tracking a recovery in crude oil prices and China’s domestic Chemical Industry. The ICE July Brent crude oil futures pared some losses while market participants stayed cautious amid renewed US-China trade tensions, ending $1.19/b higher on the day to $70.97/b at the 0830 GMT Asian close Wednesday. During the Chemical Industry on Close assessment process Wednesday, no transparent bids or offers were received, but an unregistered offer was heard at $695/mt CFR China for a 2,000-mt June cargo. Prompt domestic Chinese negotiation levels were heard around Yuan 5,250-5,270/mt levels, and was assessed at Yuan 5,260/mt Wednesday, up Yuan 70/mt on the day. “Buying appetite for toluene in China is generally low at the moment but an upward correction might be due later in June,” a Chemical Industry source said. Elsewhere, Taiwan’s state-owned CPC has issued a tender offering two 3,000 mt cargoes of toluene with minimum 99.5% purity for loading over H1 or H2 June in Kaohsiung. The tender closes May 7. The Chemical Industry last sold at least two toluene cargoes of 3,000 mt each for loading over May from Kaohsiung. Buyer details could not be confirmed.

RATIONALE:

Toluene was assessed at $674/mt FOB Korea and at $694/mt CFR China on Wednesday, up $6/mt and $10/mt respectively on the day. The markers take 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. The CFR China marker was assessed below the lowest June offer on Wednesday heard at $695/mt CFR China. Earlier in the afternoon, a June offer was heard at $675/mt FOB Korea, against no bids. The East China domestic prompt price was higher on the day by Yuan 70/mt at Yuan 5,260/mt on Wednesday, with tradable indications heard between Yuan 5,250-5,270/mt (Chemical Industry).

 

Chemical Industry
Chemical Industry

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