The East China domestic toluene price was discussed at Yuan 10,050- 10,100/mt or $1,314.22-1,320.82/mt on an import parity basis, early Thursday, a level not seen since Platts began collecting price data in the region on April 3, 2006.
The last time the price was seen near this level was May 27, 2008, when it was heard at Yuan 10,025/mt, according to Platts data.
The domestic price was up Yuan 100/mt early Thursday from Wednesday's market close. Prices have been on an uptrend since China returned from its Golden Week holidays on Monday, kicking off the week up Yuan 200/mt from last Friday and continuing to rise since.
Low inventory levels and stable demand are driving the rise, market sources said.
Some sources estimate the inventory level in East China to be less than 20,000 mt at present, down from 27,500 mt last Friday.
The last time the inventory level was below 20,000 mt was almost four years ago, on November 21, 2008, when it was 18,000 mt.
East China inventories have been falling since August 24 amid a reduction in cargo arrivals and tight domestic supply. Prior to that, it was steady at 80,000 mt over August 3-August 24.
"Spot cargo availability is low," said a trader based in China, noting that a significant portion of the current inventory had already been committed to term contract holders like downstream plants.
However, the situation could ease in the coming week, other traders in China said. They expected more cargoes to arrive soon and be made available to buyers.
