Net exports of toluene from the EU in August rose 25% year on year to 22,824 mt, which was down 9.4% month on month, Eurostat data showed.
Exports rose year on year even as the US, the prime destination for European toluene, imported less material -- exports to the US dropped 15% to 5,950 mt. that was down 59% from July.
The EU-US toluene arbitrage opportunity narrowed in August as the spread between toluene on an FOB US Gulf Coast basis and FOB ARA stood at $52/mt, compared with $88/mt in July and $72/mt in August 2013.
Freight from Europe to the US Gulf currently stands in a $40-60/mt range, depending on volume.
Front-month toluene prices in the US averaged 374.5 cents/gallon FOB USG ($1,139/mt) in August, against an average price in Europe of $1,087.5/mt FOB ARA, according to Platts data.
Turkey and India, with 6,830 mt and 4,199 mt, respectively, of EU toluene imports emerged as other large buyers in August.
