Toluene-based chemical production margins posted sharp declines late last week and into Tuesday as spot toluene values surged.
US toluene disproportionation (TDP) and selective toluene disproportionation (STDP) margins posted declines on the week with MSTDP margins falling roughly $39.25 week on week to close Friday at $1.64/mt. TDP margins moved lower as well, falling nearly $68.50 on the week to finish Friday's session at $37.77/mt. HDA margins remained in negative territory this week, shedding an additional $34.50 on the week to close at minus $64.61/mt.
The declines came as gains in toluene outpaced strengthening in other aromatics. Spot toluene prices gained roughly 39 cents from August 1 to September 1, with the September nitration-grade assessment closing Friday at 251 cents/gal FOB USG. September was seen bid Tuesday morning at 240 cents/gal FOB USG.
The gains in toluene came on the back of gains in both gasoline and reformate, related to supply constraints associated with Hurricane Harvey. Spot reformate prices rose 33 cents in August, closing Friday at 234.94 cents/gal. Those gains, plus a week on week gain of nearly 22 cents in regrade values, bolstered toluene prices as well as toluene's blend value.
