US toluene and mixed xylene spot pricing have hovered near one-year lows, assessed Wednesday at $1.90/gal ($577.60/mt) FOB US Gulf Coast and $1.92/mt ($581.76/mt) FOB USG, respectively, because of continued declines in RBOB pricing, sources said.
With chemical demand in these markets remaining weak, market participants focus on gasoline as a key driver, a source said.
Spot toluene was last seen cheaper than its current level on January 22, 2015, when it was priced at $1.88/gal, while mixed xylene spot pricing was last seen lower on January 16, 2015, at $1.91/gal.
The NYMEX RBOB futures contract settled at $1.0533/gal Wednesday, a level not seen since February 2009, and has been on a downward trend since January 5, Platts data showed. This has led to both toluene and mixed xylene reflecting downward movement as well, sources said.
In the short term, there could be more downward pressure on toluene and mixed xylene if RBOB gasoline prices continue lower due to slow demand in both markets, source said. In the longer term, blenders will be shopping the market for product as toluene and mixed xylene provide great octane boosting, sources added.
