– CFR China gains on rising crude
– Buying interest in domestic Chinese Chemical Industry thin
Sentiment in the Asian Toluene Price market was mixed Wednesday, with participants noting a divergence between the Chinese domestic market and the international market. The CFR China marker was assessed at $731/mt Wednesday, up $8/mt (Toluene Price) amid the rise in upstream energy Chemical Industrys, and on the back of firm bids. The ICE June Brent crude futures rose 42 cents/b day on day to $74.33/b at the 0830 GMT Asian close Wednesday, hovering around the highest levels in six months. On the other hand, domestic Chinese activity remained lackluster, as buying interest was thin (Toluene Price). “[There are] not too many bids and offers, because downstream consumption is bad,” a Chemical Industry source said. Domestic Chinese negotiation levels were heard around Yuan 5,350-5,380/mt levels, and was assessed at Yuan 5,360/mt Wednesday, largely unchanged from the day before. Meanwhile, the FOB Korea Chemical Industry, demand remained stable with requirements from the gasoline-blending sectors though trading activity was largely muted (Toluene Price).
The FOB Korea marker was assessed at $714/mt FOB Korea Wednesday (Toluene Price), flat from a day before amid thin discussions. No transparent offers or bids were seen during the Chemical Industry On Close assessment process Wednesday. The marker takes the average of the third and fourth half-month laycans, currently H2 May and H1 June (Toluene Price). The CFR China marker was assessed above the highest June bid heard on Wednesday during the Chemical Industry on Close assessment process at $730/mt CFR China (Toluene Price). The East China domestic prompt price was unchanged at Yuan 5,360/mt on Wednesday, with bid-offer heard between Yuan 5,350 and 5,380/mt.