The mixed xylene premium over Eurobob gasoline swaps sunk on Thursday as blending demand weakened, according to sources.
The MX premium over the Eurobob October and November gasoline swaps fell to an assessment of $92/mt on Thursday, registering a fall of $18/mt on the day and down $37/mt week on week.
"The premium is coming off seasonally as it is the end of the driving season," a source said.
MX is a blending component for gasoline and therefore weakens as the summer driving season comes to an end.
However, it had been supported by reformate and mixed aromatics exports to Asia during September, tightening the European octanes market, propping up the premium against seasonal patterns.
The source said it would be unusual if MX did not come off at this time of the year.
"It usually comes down to about $60/mt eventually," the source said, indicating that the premium is likely to see further falls for the rest of the year.
Other sources pegged the premium in the range $95-100/mt on Thursday, lower than the bid-offer range heard last week at $105-150/mt.
The premium for toluene, another blending component for gasoline, also fell Thursday amid narrower gasoline blending margins and slower export demand for mixed aromatics and reformate to Asia.
The toluene premium was assessed at $92/mt Thursday, based on a trade reported during the day.
Sources pegged the MX premium either on par or lower than the toluene premium, as MX has a lower octane rating than toluene.
On Friday, the premium for MX and toluene over the Eurobob gasoline swap buying interest was heard pegged at $90/mt.
