A recent jump in toluene barge prices has led one regional distributor to announce a price increase for solvent toluene this week. A regional distributor in Texas said Monday his will increase solvent toluene prices 2 cents starting September 15.
"The barge market is up 30 to 40 cents/gal," the distributor said. "We're going to go out first and announce [an increase]." The increase would put the solvent toluene price at 42 cents/lb FOB USG.
Last month falling energy values led some solvent sellers to consider reducing prices. As gasoline and crude prices fell, lower blend values caused spot toluene prices to fall to 240 cents/gal FOB USG. Prices were as high as 342 cents/gal FOB USG at the beginning of July.
A recent octane shortage has caused increased blend interest in toluene, though. On Friday, September toluene traded at 279 cents/gal FOB USG, up 39 cents in 3 weeks.
Solvent xylene prices are expected to stay flat at 42 cents/lb FOB USG, the distributor said. In the past three weeks barge MX prices have climbed 12.5 cents, not enough to warrant an increase in solvent prices, the source said. The gains were enough to quiet any talks of a price reduction, though.
"The barge market is up 30 to 40 cents/gal," the distributor said. "We're going to go out first and announce [an increase]." The increase would put the solvent toluene price at 42 cents/lb FOB USG.
Last month falling energy values led some solvent sellers to consider reducing prices. As gasoline and crude prices fell, lower blend values caused spot toluene prices to fall to 240 cents/gal FOB USG. Prices were as high as 342 cents/gal FOB USG at the beginning of July.
A recent octane shortage has caused increased blend interest in toluene, though. On Friday, September toluene traded at 279 cents/gal FOB USG, up 39 cents in 3 weeks.
Solvent xylene prices are expected to stay flat at 42 cents/lb FOB USG, the distributor said. In the past three weeks barge MX prices have climbed 12.5 cents, not enough to warrant an increase in solvent prices, the source said. The gains were enough to quiet any talks of a price reduction, though.
