Spot toluene prices in the US gained ground and the market flipped into contango on the pending gasoline season, sources said Tuesday.
Spot prices moved higher Tuesday with March heard traded at 345 cents/gallon FOB USG, up 3 cents/gallon after being assessed at 342 cents/gallon FOB USG. Sourcs attributed the gains in March to higher crude values. NYMEX crude futures were up some $2.66 to $99.63/barrel at 2:59 EST.
The market flipped into contango with sources reporting an April trade at 347 cents/gallon FOB USG. The higher values were attributed to rising crude as well as demand from gasoline ahead of the driving season.
Spot toluene prices have posted steady gains in 2011, up nearly 28 cents/gallon on the back of strong chemical demand. While toluene prices have crimped margins for toluene-fed aromatics units, MSTDP margins were still robust, estimated Monday at $405.70/mt. TDP and HDA ecnonmics were also estimated lower at $123.05/mt and $25.18/mt, respectively.
