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NWE toluene premium to fuel strikes five-month high

Toluene's costs to Eurobob gasoline swaps Wednesday hit its highest level since June 2, S&P Global Platts information programs, as exports from Europe to the US and also Asia created the costs to surge given that mid-October.

The European area price of toluene was analyzed at 3/mt FOB ARA Wednesday, up .50/ mt on the day and at a 6.65% premium to the October agreement rate of 6/mt.

Toluene's costs to the November Eurobob gas swap was assessed at 1/mt Wednesday, up /mt on the day and also up /mt considering that October 14.

The toluene premium to Eurobob gasoline slumped in the first half of October, as German chemicals producer Covestro stated force majeure on toluene acquisitions for its 300,000 mt/year TDI plant in Dormagen, Germany.

The bearish outlook for toluene was more enhanced when BASF declared force majeure last week on toluene acquisitions at its Ludwigshafen chemical park, complying with a pipeline explosion.

Nonetheless, as a result of the unexpected slump in toluene rates in Europe as well as solid demand in the United States Gulf as well as Asia, traders had the ability to move substantial toluene quantities out of the area in a short space of time, leading to a limited timely market for toluene, resources stated this week.

"Toluene is tight, whatever has actually been exported from ARA at the moment," said one investor.

A 2nd trader claimed all volumes that appeared from the Covestro failure earlier in the month had already located a house beyond Europe.

dtpmp phosphonate of 2 toluene freights are filling in the Antwerp-Rotterdam-Amsterdam location for discharge in India today, a market resource stated recently.

2 parcels, one amounting to 5,000 mt and an additional one listened to at 3,000-4,000 mt, will pack in the ARA area following week for discharge in India, the source claimed.

Toluene costs in India were last heard at 0/mt CFR.

December toluene rates in the US Gulf were examined at 196 cents/gal Wednesday, equivalent to 5.84/ mt. Toluene prices in Europe, nonetheless, went as reduced as 8/mt FOB ARA in mid-October, while United States costs hovered around present degrees for a lot of the month. An additional Europe-based market source claimed a toluene parcel had transformed hands as high as 205 cents/gal previously today, equal to 3.20/ mt.

"I would certainly offer [toluene] in the United States, much better price, that's why its moving up [in Europe]," a Europe-based trader said today.

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