Spot toluene prices in the US were talked lower to open the week as sources talked of weakened demand associated with recent freezing weather conditions in the US Gulf.
February spot toluene ranges were heard Monday at 330-332 cents/gallon FOB USG, down 2-3 cents from Friday. The decline in the spot price was attributed to decreased consumption as one consumer was heard to be selling product, sources said. Details and confirmation were not immediately available.
The decline in price could mean good news to operators of MSTDP units, who have seen margins shrink in the last week. Softening spot benzene values have pulled MSTDP margins lower, down roughly $34/mt in the past week and down $47/mt since January 27. During that same period, spot benzene values have fallen roughly 14 cents/gallon.
Still MSTDP margins were estimated Monday in the low $340s/mt on the back of strong MX and PX values. PX prices were at record-high levels, closing Friday at $1,622.50/mt FOB USG while MX prices were strong on lower refinery rates, increased exports, and a wide MX-PX spread and were near 352 cents/gallon Monday.
The fall in toluene values widened the spread between toluene and MX Monday, with MX maintaining a roughly 21 cents/gal premium to toluene.
