Spot toluene prices continued to climb as demand from gasoline blenders increased this week.
After trading at 345 cents/gal FOB USG for March and 347 cents/gal FOB USG for April earlier in the week, sources talked March toluene ranges higher Thursday. March was heard bid at 347 cents/gal FOB USG against offers at 357 cents/gal FOB USG.
April maintained a 3-cent premium to March, sources said and ranges were talked at 350-360 cents/gal FOB USG. Ultimately a March deal was heard done at 354 cents/gal FOB USG.
Sources said that demand from chemicals remained strong, however demand from the gasoline sector also emerged this week, flipping the market into contango.
On the chemical side, margins for toluene-fed units were still relatively strong however fell below the $400/mt mark Wednesday at $395.13/mt for MSTDP units. Following the latest trade, that number fell and was estimated at $370.56/mt.
The market could tighten though as demand from the gasoline results in material being pushed away from chemicals, sources said. Blend value for toluene has climbed sharply since mid-February, having risen 51 cents to 334.54 cents/gallon. At that level, blend value would be 19.50 cents/gallon below the nitration grade price, however would be roughly over 10 cents higher than the last March commercial grade deal, heard done last week at 324 cents/gal DDP USG.
