Prices in the toluene and mixed xylene markets, which have been trending downward since July 14, could continue to decline as gasoline blending demand weakens further, sources said.
Toluene and mixed xylene are attractive in gasoline blending for boosting octane values. Both had recently been attractive for blending due to tighter supply in other blendstocks in addition to competitive pricing, sources said.
Since July 14, toluene spot pricing has dipped 30 cents/gal, or $91.20/mt, while mixed xylene pricing has fallen 28 cents/gal, or $84.84/mt, based on Platts data. These declines have been a result of higher supply in other blendstocks and slowing gasoline blending demand after the peak of the summer driving season that typically occurs around July 4, sources said, adding that spot pricing would likely continue lower because gasoline demand was the primary driver.
“Gasoline blending demand has been the primary driver of toluene and mixed xylene markets as chemical demand in both markets has been and remains poor, therefore prices will continue to fall,” a source said.
Toluene was assessed Friday at $2.82/gal ($857.28/mt) FOB US Gulf Coast, while mixed xylene was priced at $2.78/gal ($842.34/mt) FOB USG.
