Blend values for toluene and mixed xylene have become a price floor as their derivative demand shrank in the spot market, sources said Sunday on the sidelines of the American Fuel and Petrochemical Manufacturers' annual conference.
Toluene and MX blend values were assessed at record highs March 5 at $4.679/gal and $4.7002/gal, respectively, according to Platts data. Prices have been falling since, as toluene and MX blend demand has been weakened amid competitive pricing from other blendstocks. Friday, the blend value of MX was estimated at $3.9903/gal, while toluene's blend value was estimated at $3.9729/gal.
Demand for MX and toluene has been weakened as downstream derivatives such as paraxylene crashed in Asia. PX prices fell from $1,700/mt CFR Taiwan/China in early March to $1,500/mt CFR Taiwan/China last week. US spot paraxylene dropped $60 last week to be assessed Friday at $1,455/mt FOB USG. Asian toluene prices were assessed at $1,107/mt Friday, down $37 last week amid rising inventory levels in China.
Asian isomer-grade mixed xylenes plunged $75 last week to an eight-month low of $1,172.50/mt FOB Korea and $1,182.50/mt CFR Taiwan on Friday. The prices were the lowest since July 26, when they closed at $1,170/mt FOB Korea and $1,187/mt CFR Taiwan, according to Platts data. The Asian isomer-MX market last week was pressured by sluggish sentiment and long supply. On Friday, US spot toluene was assessed at $3.95/gal ($1,200.80/mt) FOB US Gulf Coast and US spot MX was assessed at $3.97/gal ($1,202.91/mt) FOB USG. MX spot prices have been falling since February 11, when spot was assessed at $4.66/gal. Toluene spot prices have declined since the assessment at $4.53/gal on February 12. Both markets have been pressured by weak demand. Their blend values are expected to be the price floor until chemical demand picks up.
