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.
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).