- Toluene demand weak- Arbitrage from Europe to the
US closed





The premium of toluene to Eurobob in Europe
dropped $9.75/mt over the past week, to $220/mt as a result of sluggish market
activity. The European spot market for toluene
was weak last week. However, availability increased as the French strikes ended. A trader
stated that "demand is almost dead". A
distributor stated that "all suppliers have returned to normal production
rates." No more restrictions from French strikes. The demand
for blends has been low despite the wider gasoline-naphtha gap, which usually
boosts stock. Toluene retained a higher-than-usual price
premium over mixed-xylenes (another gasoline blending product). Market
participants stated that the premium is normally $20-25/mt. A trader
stated that MX should be $20-25/mt less than toluene. Arbitrage
from Europe to the US was closed due to a lack of...