Toluene and mixed xylene fundamentals in Northwest Europe have found support from an open arbitrage to the US, with numerous market participants working trans-Atlantic exports.
This has also diverted offers from the European spot market, where no firm selling interest has been heard this week on either product.
Toluene and MX premiums over Eurobob gasoline have also rebounded above the $90/mt mark amid persistent firm buying interest in the Platts Market on Close assessment process from a producer based in the Amsterdam-Rotterdam-Antwerp region.
On Tuesday, Total Petrochemicals and Refining had outstanding February bids at premiums of $90/mt and $92/mt for toluene and MX respectively, although other counter-parties abstained from participation in the MOC process and were heard to be focusing on putting parcels together.
A second European producer was heard to be working the trans-Atlantic arbitrage, along with a couple of traders.
Nevertheless, no supply tightness has been heard in the region, as supplies had lengthened in previous weeks amid weak domestic demand fundamentals.
This had also kept the demand front fragmented, with buy ideas from gasoline blending and chemical distributors remaining in premiums in the $50s/mt and $70s/mt respectively.
February CIF ARA prices of toluene and MX were assessed Tuesday at $725/mt and $727/mt respectively.
March FOB USG prices of toluene and MX stood at 265 cents/gal ($805.60/mt and $802.95/mt respectively).
This put the toluene spread between the two regions at $80.60/mt, while the MX spread was at $75.95/mt, which were both sufficient to cover freight expenses of around $35-$40/mt.
Toluene and MX remained in tight supply in the US amid ongoing refinery turnarounds.
