Asia toluene – Asia toluene falls below $700/tonne on weak import demand - Arhive

SINGAPORE (ICIS)–Asia’s toluene prices have fallen below $700/tonne for the first time since mid-January this year, reversing the gains made in the past few weeks, ICIS data showed on Thursday.Asia toluene

March prices were understood to be at $690-700/tonne FOB (free on board) Korea in the morning of 23 February, while April offers were at $705-710/tonne FOB Korea, market players said.

The last time prices were below $700/tonne was on 17 January, according to ICIS data.Asia toluene

FOB Korea prices have been falling since 16 February because of weak Chinese buying interest in imports, amid a closed FOB Korea-CFR (cost & freight) China price spread, and the poorer-than-expected performance of the downstream benzene sector, market participants said.

The increasing number of offers for April and May shipments also contributed to the downside pressure.Asia toluene

Weak Chinese buying interest has been plaguing the toluene market since before the Lunar New Year period because importers were not willing to stock up on imported cargoes.Asia toluene

“There was also no room for FOB Korea cargoes to be moved to China since yuan-denominated prices were much more affordable,” a southeast Asian trader said.

Buyers were further deterred from entering the CFR China market since shoretank inventories have been climbing consistently since early February.

The combination of these factors started to take a toll on FOB Korea prices as sellers with either March or April-loading cargoes had to lower their offers to attract buying interest.