– Premiums stable for March and April
– Talk of lower premiums to come
The European toluene market was quiet on Tuesday, with no new activity. The toluene premium for March over Eurobob gasoline was assessed stable at $165/mt, while April was assessed steady at $160/mt. Outright pricing for toluene is flat through the forward months, while the Eurobob gasoline market is in contango. The toluene market has become delinked from the gasoline market, as blend value is typically pegged under $100/mt. Spot demand from the petrochemical market has been low, with buyers indicating premium discussions trending down towards $140/mt last week. US toluene prices have increased slightly over European material. Exporters are hoping the arbitrage window could open now that more material is available within Northwest Europe, but sources said a wider price spread is still required to make spot exports workable.
S&P Global assessed the CIF ARA toluene premium over Eurobob gasoline at $165/mt for March on Tuesday, stable from Tuesday. No disproving indications were heard in the market. The April premium was assessed stable at $160/mt.