The premium of US Gulf Coast spot toluene to regular unleaded 87 USG gasoline was at 85.92 cents/gallon Tuesday, the highest premium since June. The last time the premium was this high was June 27, when it was at 87.09 cents/gallon, according to Platts data.
The assessment was made Tuesday at 387 cents/gallon FOB USG for August after hearing a bid-offer range of 385-395 cents/gallon FOB USG for August by the market-on-close assessment window.
Market sources said toluene's relatively high premium to gasoline makes it unattractive economically as a gasoline blendstock, especially considering that reformate was assessed Tuesday at 60 cents/gallon premium to regular unleaded 87 gasoline and alkylate was priced at a 33 cents/gallon premium.
Toluene competes with alkylate and reformate as a gasoline blendstock.
Another factor in showing toluene's strength in the marketplace is the premium to the blend value, which Platts data showed at 29.18 cents/gallon Tuesday, the highest premium since June 24.
Regarding toluene demand, a trader said Wednesday that there was "no demand from end users."
The only activity seen in the marketplace by mid-day Wednesday were August offers at 387 cents/gallon FOB USG. Sources said prices were lower on weaker September NYMEX RBOB futures, which were down 10.37 cents/gallon to 293.36 cents/gallon by the time of publication.
