Asian Toluene Chemical Industry: Tumbles amid falling crude and lower offers

Chemical Industry

Chemical Industry news of Asian Toluene

– The crude drop below $70/b amid US-China trade tension

– Depreciation of Chinese Yuan dampens demand

Asian toluene continued its downtrend as upstream crude took a hit following US President Donald Trump’s threats to impose additional tariffs on China. The ICE July Brent crude oil futures dipped below the $70/b mark at the 0830 GMT Asian close Tuesday, ending 41 cents/b lower from last Tuesday at $69.78/b Tuesday. “The focus of the Chemical Industry today is on renewed tensions between China and the US. While the tariffs may not have a direct impact on toluene, market sentiment has been adversely affected and the Yuan has greatly depreciated,” said a market source. During the S&P Global Chemical Industry on Close assessment process Tuesday, no transparent bids or offers were received, but offers were heard coming down to $670/mt FOB Korea and $685/mt CFR China, respectively, at the close. Buying interest in the Asian toluene Chemical Industry was lackluster as the depreciation of the Yuan against the US dollar kept buyers at bay. While China-based end-users returned from the May 1 holidays, buyers had largely adopted a risk-off mood. Discussion levels for prompt cargoes in the domestic China Chemical Industry were heard at around Yuan 5,180-5,200/mt, and the prompt domestic China marker was assessed at Yuan 5,190/mt Tuesday, down Yuan 120/mt from last Tuesday.


Asian toluene was assessed down $11/mt from last Tuesday at $668/mt FOB Korea Tuesday, tracking the downward movement in crude prices. The marker takes the average of the third and fourth half-month laycans, currently H1 June and H2 June. During the S&P Global Chemical Industry on Close assessment process, no transparent deals, bids or offers were seen. An offer for a June cargo was heard at $670/mt FOB Korea, against no bids. The CFR China marker was assessed at $684/mt, below the lowest June offer heard at $685/mt CFR China. The East China domestic prompt price was lower from last Tuesday by Yuan 120/mt at Yuan 5,190/mt on Tuesday, with tradable indications heard between Yuan 5,180-5,200/mt.


Chemical Industry
Chemical Industry

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