Toluene prices on U.S. Gulf Coast jump to US$1,210/tonne FOB Jan. 12 due to improved demand from regional chemicals producers, pushing prices as high as US$1,125/tonne in Rotterdam, opening arbitrage between two regions
Alison Gallant
LOS ANGELES
,
January 13, 2012
(Industry Intelligence)
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Toluene prices in Northwest Europe increased Jan. 12 due to higher prices on the U.S. Gulf Coast, leading to an arbitrage between both regions, Platts reported the same day.
Prices for toluene on the U.S. Gulf Coast jumped to US$1,210 per tonne free on board due to improved demand from regional chemicals producers, pushing prices as high as $1,125/tonne in Northwest Europe. One market insider told Platts that a U.S. price of $1,210/mt was tantamount to a Rotterdam price of $1,160/tonne FB as the cost of freight between the regions is about $60/tonne.
Though prices could go higher, shipments are unlikely due to a dearth of spot product in Europe.
The primary source of this article is Platts, New York, New York, Jan. 12, 2012.
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