Asian Toluene Price: Slides on lower offer, tracking fall in East China

Chemical Industry

Asian Toluene Price

– Domestic East China price tumbles Yuan 35/mt

– Crude oil weakness weighs on toluene market

Asian toluene prices slipped from last Wednesday to be assessed at $687/mt FOB Korea and $706/mt CFR China Wednesday, tracking lower domestic East China ex-tank prompt discussions amid thin trade. No firm bids or offers were heard at the start of the week with several market participants sidelined. Prompt domestic price continued to fall from last Wednesday by Yuan 35/mt to Yuan 5,320/mt on Wednesday, with indications heard between Yuan 5,310-5,330/mt (Toluene Price). “Downstream consumption is rather bad … the main thing to look out for currently is the inventory situation in China,” a market source said. “The drop in oil prices also have a definitive negative impact on toluene,” the source added. The ICE June Brent crude oil futures tumbled at the 0830 GMT Asian close Wednesday, ending $2.65/b lower from last Wednesday at $71.65/b. In plant news, South Korea’s Yeochun Naphtha Cracking Center plans to shut its No.1 benzene – Toluene Price – xylene, or aromatics plant at Yeosu from May 17 until the second half of June, for nearly 40 days, according to a source close to the company. The No. 1 plant has the capacity to produce 100,000 mt/year of toluene. Meanwhile, Japan’s JXTG Nippon Oil & Energy has shut its Chita-based aromatics plant after a mechanical glitch, a company source said last Wednesday. The plant has a nameplate capacity of 380,000 mt/year of PX and 240,000 mt/year of benzene, of which 140,000 mt/year of benzene is produced directly from the refinery using reformate feed, and 100,000 mt/year from the toluene disproportionation unit.

RATIONALE:

Toluene Price was assessed down $11/mt from last Wednesday at $687/mt FOB Korea Wednesday. The marker takes the average of the third and fourth half-month laycans, currently H2 May and H1 June. During the market on Close assessment process, no transparent deals, bids or offers were seen. A H2 May offer was heard at $688/mt (Toluene Price) FOB Korea, against no bids. The CFR China marker was assessed at $706/mt, down $9/mt from Wednesday, tracking the domestic East China market lower in thin trade. A June bid was heard at $705/mt CFR China, against no offers. The East China domestic prompt price was lower from last Wednesday by Yuan 35/mt at Yuan 5,320/mt on Wednesday, with tradable indications heard between Yuan 5,310-5,330/mt (Toluene Price).

Chemical Industry
Chemical Industry

 

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