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Americas: US MSTDP margins continue to slide on lower benzene, paraxylene

https://www.chemnet.com   Mar 14,2011 Platts
Following record high levels in late February, MSTDP margins in the US have turned sharply lower as prices for benzene and paraxylene have fallen. After being estimated near $470/mt back on February 18, MSTDP margins have shed roughly $145 to be pegged at $327.57/mt at market close Wednesday.

The decline in margins was attributed, in part, to falling paraxylene and benzene values. Spot benzene prices in the US have turned south in recent days, shedding roughly 25 cents since the beginning of March. March benzene was talked Thursday at 390-399 cents/gal DDP USG.

As well, after touching record highs earlier in the year, US paraxylene prices showed signs of weakening. After peaking at $1,787.50/mt on February 23, paraxylene values have scaled back, falling $70/mt to close Wednesday at $1,717.50/mt FOB USG.

The decline in MSTDP margins was also attributed to stronger toluene prices. Since MSTDP margins topped out at $470/mt, spot toluene values have risen roughly 20 cents and closed Wednesday at 350 cents/gallon FOB USG following a March trade heard done at that level.

Toluene was talked in a wide range Thursday with bids heard as low as 343 cents/gal FOB USG against offers heard as high as 360 cents/gal FOB USG. An April trade was heard done at 345 cents/gal DDP USG however confirmation was not immediately available.

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