The contango structure in the European toluene market has steepened as the interest for April volumes waned, sources said.
Toluene was assessed Tuesday at $579/mt FOB ARA for April and $593.50/mt FOB ARA for May, a contango of $14.50/mt. The respective prices on Monday stood at $573.50/mt and $583/mt, a contango of $9.50/mt.
"Nobody seems to be in a hurry releasing April barrels, rather May volumes are in the focus now," a buyer said. "Driven by the gasoline contango, May looks a bit stronger" for toluene.
FOB ARA toluene for delivery 5-30 days forward was assessed $9 higher on the day Tuesday at $586.50/mt, the uptick driven by gasoline.
The April and May gasoline swaps were assessed Tuesday at $464/mt and $473.50/mt respectively, up $11.75/mt and $11.75/mt as gasoline recovered recent losses.
