NWE toluene March contract price heard discussed from rollover to $5-$15/mt increase: sources

Chemical News: NWE toluene March contract price heard discussed from rollover to $5-$15/mt increase: sources

https://www.chemnet.com Mar 01,2017 Platts
The March European contract price of toluene is likely to settle in a range of $665-$680/mt, sources said Tuesday.

The March contract price was being negotiated by buyers on sellers Tuesday.

The contract price for February settled at $665/mt FOB ARA. One buyer said a rollover of the contract price into March would be appropriate as spot demand was evidently low.

"Even at $665/mt buying interest is scarce [in the spot market]," the buyer said, also notionally pegging selling interest in the spot market at $670-$675/mt. "You should find product available at that level."

A second market source on the selling side argued that average spot prices for toluene in the second half of February justified an increase in March.

"We expect an increase; that pull from the US Gulf was a factor in discussions last month but that arbitrage closed a while back and that still didn't stop toluene from pricing around $675/mt in the second half of February," the second source said, adding that initial discussions had taken place in the $670-$680/mt range. "So there is an increase expected, it just depends how much."
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