Toluene Prices in India

NWE Toluene Prices- June premium picks up as prompt premium narrows

Chemical Industry

Toluene Prices

– June premium up $5 at $90/mt

– Arb to US Gulf open on paper

The May premium for European Toluene Prices over Eurobob gasoline was stable on Thursday at $115/mt. June ticked up $5 to a premium of $90/mt, based on indications from a trader that saw a much thinner premium between the prompt end of the Market and later on. A fall in gasoline Toluene Prices on Thursday caused the arbitrage window to the US to open on paper, as the spread between the toluene CIF ARA assessment and arrival date US Gulf prices showed a difference of roughly $50/mt — generally considered workable by traders. Fundamentally, sentiment pushed against the higher premium, as a trader said the Market was much more in balance, with Mediterranean producers back online and cargoes offered for both May and June delivery. These offers were heard earlier in the week at a premium of $130/mt (Toluene Prices), however, and not yet workable.

RATIONALE:

S&P Global assessed the CIF ARA Toluene Prices over Eurobob gasoline at $115/mt for May on Thursday, stable from Thursday. A bid of $114/mt by Total was outstanding after the Market on Close assessment process. The June premium was assessed $5 higher at $90/mt (Toluene Prices), due to indications of a narrower spread between the months from a trader.

 

Toluene Prices
Toluene Prices

Asian Styrene Chemical Industry: Rises $11/mt on day, at $1,088/mt CFR China

Chemical Industry

Chemical Industry news of Asian Styrene

– Improved buying activity, SM inventory declines

Downstream Chemical Industry inch lower on week

Asian styrene monomer inched $11/mt higher on day to $1,088/mt CFR China and $1,048/mt FOB Korea Thursday on the back of the release of fresh weekly inventory data indicating a draw-down in stockpiles. In the East China domestic Chemical Industry, the June marker rose Yuan 95/mt on day to Yuan 8,405/mt ex-tank Thursday. The May/June spread in the East China domestic market was seen hovering between a flat to backwardated structure this week. This could be due to the higher supply expected after H2 May, said sources. Asian SM continues to trend higher despite the losses in western crude oil futures and the stable-to-softer feedstock prices. A Chinese source attributed the gains in SM to improved buying activity in the Chinese domestic Chemical Industry. According to sources, styrene inventory in East China declined 19,500 mt week on week to 241,000 mt Thursday. In the downstream Chemical Industry, however, discussions were thin amid bearish sentiment after comments by US President Donald Trump on tariffs against China on Thursday. Asian acrylonitrile-butadiene-styrene slid $25/mt from last Thursday to $1,545/mt CFR China and $1,565/mt CFR Southeast Asia, general purpose polystyrene fell $10/mt from last Thursday to $1,265/mt CFR China and $1,285/mt CFR Southeast Asia, while high impact polystyrene was stable to $5/mt lower from Thursday at $1,340/mt CFR China and $1,360/mt CFR Southeast Asia Thursday. The limited Chemical Industry activity in the downstream Chemical Industry was attributed to a wait-and-see approach, as clearer price direction was expected after the conclusion of the US-China trade talks later this week.

RATIONALE:

Asian SM was assessed $11/mt up on day at $1,088/mt CFR China and $1,048/mt FOB Korea Thursday. The markers currently take the average of the H1 and H2 June laycans. There were no transparent bids or offers during the Chemical Industry on Close assessment process on Thursday. H1 and H2 June were assessed at the pegged level of $1,088/mt. In the East China domestic Chemical Industry, the June marker was assessed up Yuan 95/mt on day at Yuan 8,405/mt ex-tank, equating to $1,078.79/mt on an import parity basis. The FOB Korea marker was assessed at $1,048/mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,078/mt, based on the pegged $10/mt spread to CFR China.

 

Chemical Industry
Chemical Industry

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.

RATIONALE:

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

US MTBE Chemical Industry: Spot dips 4 cents

Chemical Industry

– MOC offer seen at 206.50 cents/gal

– Discount to FOB ARA narrows

Spot Gulf Coast MTBE was assessed flat to NYMEX June RBOB as an offer in the Chemical Industry on Close assessment process set the ceiling for pricing. In the MOC assessment process, Lukoil came in with an offer at 208 cents/gal FOB USG for 45,000 barrels, walking it down to 206.50 cents/gal. No bids or trades were seen. While spot remained flat to RBOB, the discount to the FOB ARA marker narrowed to 17.22 cents as European Chemical Industry MTBE saw a noticeable drop in pricing. On Thursday, the FOB ARA marker fell nearly 11 cents to 223.69 cents/gal FOB ARA amid heavy selling.

RATIONALE:

S&P Global assessed spot USG MTBE at 206.47 cents/gal FOB USG, down 4.03 cents on the day. The assessment came below an offer in the Chemical Industry on Close assessment process and was flat to the assessment of NYMEX June RBOB.

Chemical Industry
Chemical Industry

NWE Toluene Price – May premium lifts on prompt demand

chemicals-update-1

NWE Toluene Price

– May over Eurobob rises $13/mt

– Arbitrage over $50/mt on paper

The May premium for Toluene Price over Eurobob gasoline picked up on Wednesday, as prompt demand during the Market on Close assessment process met no response from sellers. The May premium rose by $13/mt to $93/mt. June remained stable at an $80/mt premium. Overall conditions in the European toluene Market have been described as highly supplied, with little spot material sought by petrochemical suppliers for several weeks. Demand in the spot Market has been driven by gasoline blenders, leading to the Toluene Price premium dropping closer to blend value. This matched with a trader peg in the Market of value $60-$80/mt. On paper, the arbitrage to the US was open on Wednesday, with a potential gross profit of approximately $55/mt. But demand from the US has been lackluster, and stocks have been described as ample. US Toluene Price activity remained sparse before the weekend, with buyers absent from the Market due to logistical constraints.

RATIONALE:

S&P Global assessed the CIF ARA Toluene Price over Eurobob gasoline at $93/mt for May on Wednesday, up to $13/mt from Wednesday. A bid of $92/mt by Total was outstanding during the Market on Close assessment process. The June premium was assessed stable at $80/mt (Toluene Price).

 

Toluene Price
Toluene Price

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

 

NWE Styrene Chemical Industry – Prices range bound amid thin discussions

Mathanol Prices

Chemical Industry news of NWE Styrene

– Contract price to settle this week

– US producer set for restart

The European styrene Chemical Industry started the week on a quiet note as prices remained stable on the day. Expectations for the May styrene contract price in Europe have been heard at a rollover or a small increase. “I expect a Eur30/mt increase relative to benzene and ethylene costs,” a source said. Despite the rise in April styrene spot prices some Chemical Industry participants expected a rollover for the May contract price. “With the [current] supply-demand balance and the spread between spot and contract price at 13% there is no reason for an increase,” the source said, referring to the typical spread between spot and contract prices. The 5-30 day forward styrene spot price was assessed at $1,124/mt on Wednesday, rising 4% since the start of the month. Although the European Chemical Industry has been well supplied, prices have been increasing on falling Chinese inventories, styrene plant maintenances as well as an increase in feedstock benzene. In the US, sources said derivative demand could improve amid talk that LyondellBasell could restart styrene production at its Channelview facility in early May, following planned maintenance. In Asia, styrene rose $7/mt from last Wednesday to $1,075/mt CFR China Wednesday amid thin discussion ahead of the holiday in China.

RATIONALE:

S&P Global Chemical Industry styrene for loading 5-30 days forward at $1,124/mt FOB ARA on Wednesday, stable on the day. May was assessed at $1,124/mt FOB ARA, stable on the day amid no disproving indications. June was assessed at $1,096/mt FOB ARA, stable on the day amid no disproving indications.

Chemical Industry
Chemical Industry

Asian Iso-MX: Dips $1-$3/mt on week amid market volatility

Chemical Industry

– PX inches up after Monday tumble

– FOB Korea falls $15/mt day on day

Asian isomer-grade mixed xylene was assessed down $3/mt week on week at $723/mt FOB Korea and by $1/mt at $737/mt CFR Taiwan Monday, amid volatility in both upstream and downstream markets during the week. June ICE Brent crude oil rose above $75/b earlier in the week but had dropped to $74.21/b at 0830 GMT in Asian close Monday, down $1.07/b day on day. The FOB Korea isomer-MX marker was assessed down $15/mt day on day, as offers appeared, and following a sharp tumble in paraxylene the previous day. However, PX had inched up $3.17/mt day on day to $951/mt CFR Taiwan/China on Monday. Over the week, the spread between PX and MX narrowed by $11.67/mt to $228/mt on Monday. The spread hit a low of $209.83/mt on Monday, the lowest since July 30, 2018, when it was at $202.83/mt, S&P Global data showed. Asian PX continued to weaken as supply increased due to the start of Hengli Refining and Petrochemical’s new 2.25 million mt/year PX plant in Dalian in late March. Meanwhile, in China-related news, the East China isomer-MX inventory level decreased about 15% week on week to close to 110,000 mt this week, market sources said. The prompt East China isomer-MX price was heard at Yuan 5,680-5,700/mt on Monday or about $720.60/mt on an import parity basis. Ex-tank cargoes for early May were heard negotiated at Yuan 5,710-5,730/mt, or about $724.40/mt.

RATIONALE:

Asian isomer-MX was assessed down $15/mt and $5/mt day on the day at $723/mt FOB Korea and $737/mt CFR Taiwan, respectively, Monday. The markers take the average of the third and fourth half-month laycans, currently second-half May and H1 June. No bids or offers were registered during the  Market on Close assessment process. During the  MOC, an offer for a second-half May FOB Korea cargo was heard lowered to $725/mt but did not attract any bids. The H2 May laycan was assessed at $723/mt FOB Korea, below the offer. H1 June was assessed at par with H2 May at $723/mt FOB Korea, keeping the structure unchanged day on day. No bids or offers were heard on a CFR Taiwan basis, but the marker was assessed lower by $5/mt to $737/mt. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

 

Chemical Industry

NWE Benzene Chemical Industry – Prompt higher despite crude drop

Chemical Industry

Chemical Industry news of NEW Benzene

– ICE Brent down $3.15/b

– Benzene up $32.50/mt on week

The 5-30 days forward benzene assessment rose $7 to $772.50/mt on Monday, despite a downturn in the upstream energy Chemical Industry. The 16:30 London assessment for ICE Brent crude was down $3.15 from Monday at $71.89/b, following a strong rally after the Easter weekend. This increase was carried through into benzene, with the 5-30 days forward assessment rising $32.50/mt since last Monday. No assessment was made last Monday due to a public holiday in the UK. Prompt values for benzene remained at a premium at the end of the week, though trading was heard to be contained for full month May and July on Monday. Offers remained absent for the front half of May, implying that the Chemical Industry held some tightness. Any shortness of material was unlikely to continue past the end of May due to imports from India Chemical Industry, as well as remaining potential for a US cargo to be booked. There was a sharp backwardation into June due to the arrival of this material as well ss the potential for US imports.

RATIONALE:

S&P Global assessed benzene for delivery 5-30 days forward at $772.50/mt CIF ARA Chemical Industry Monday, up $7 from Monday. May was assessed at $769.50/mt based on a curve. H1 May was assessed at $786/mt, above a bid Monday at $785/mt with no disproving indications on Monday. H2 May was assessed at $754/mt, within the latest bid-offer range of $750-$755/mt (Chemical Industry). June was assessed down $10 at $704/mt, within the latest bid-offer range of $700-$705/mt. July was assessed at $709/mt, following two trades at $710/mt Monday and a $710/mt outstanding offer, with no disproving indications on Monday. August was assessed flat to July. September was assessed flat to August. FOB was assessed at $769.50/mt (Chemical Industry), flat to CIF.

 

Chemical Industry
Chemical Industry

Asian Benzene – FOB Korea falls $5/mt on day

Chemical Industry

– Ignores gains in upstream crude

– Thailand’s benzene exports surges 25.9% on year

FOB Korea benzene slipped $5/mt on the day to $645/mt Friday despite gains in upstream June ICE Brent crude futures, which rose $1.08/b on the day to $75.28/b Friday. Over in the CFR China market, no June discussions were reported Friday, but H2 May was offered at $640/mt CFR China. Meanwhile, supply is expected to grow in the domestic market given that Hengli Petrochemical has achieved on-specification production of benzene, with sales volumes from the plant likely to gradually increase. Hengli Petrochemical operates two lines, each with a nameplate capacity of 450,000 mt/year of benzene. Market sources said that operating rates of the first line was approximately 70%, while the second line was not yet operational. In other news, according to market sources, China imported 307,000 mt of benzene in March, with the average import price at $603.90/mt CFR China. In trade statistics news, Thailand’s benzene exports surged 25.9% year on year, or 3.9% on the month, to 55,705 mt in March, the latest customs data showed.

RATIONALE:

FOB Korea benzene was assessed down $5/mt on the day at $645/mt Friday. The marker takes the average of the third, fourth and fifth half-month laycans, H2 May, H1 June, and H2 June. During the Market on Close assessment process Friday, there were no transparent bids and offers reported. The H2 May laycan was assessed at $643/mt FOB Korea, between a bid and offer reported at $640/mt and $644/mt FOB Korea, respectively. The H1 and H2 June laycans were assessed at $646/mt FOB Korea, below an offer reported at $647/mt FOB Korea. CFR China was assessed at the pegged level of $634/mt, tracking losses in FOB Korea. The East China marker was assessed up Yuan 1/mt on the day at Yuan 4,523/mt, or $583.07/mt on an import parity basis.

Chemical Industry
Chemical Industry