Benzene/Xylene: Overview of US Toluene-Xylene Market Discussions

Benzene/Xylene: Overview of US Toluene-Xylene Market Discussions

On January 3, due to the decline in upstream energy futures prices, the spot price of nitrifying grade toluene in the US Gulf of Mexico fell sharply. January NGT was bought and sold at DDP HTC 300-350 cents/gal during the closing appraisal process, but after the MOC process there were signs of higher FOB at ITC Deer Park at 350-375 cents/gal gallon. January MX bid/ask prices were 340-370 cents/gal, FOB ITC Deer Park, also after MOC, flat from Dec. 30. The reason for the sharp drop in prices is unclear as many market participants are still absent due to the holiday. One market participant attributed the loss to lower energy prices. Upstream crude oil and gasoline futures fell 4%-5% intraday due to weak demand expectations in China and a bearish economic outlook. NYMEX February RBOB closed at 236.12 cents/gallon, down 11.71 cents from December 30, NYMEX WTI crude oil fell to $76.93/barrel, down $3.33 from December 30.