US spot benzene-toluene spread widens
Abstract
HOUSTON (ICIS)--The price spread between US spot benzene and spot toluene widened this week, ICIS analysis showed on Friday.
HOUSTON (ICIS)--The price spread between US spot benzene and spot toluene widened this week, ICIS analysis showed on Friday.
For the week of 20 December spot benzene was valued at 19 cents/gal more than spot toluene, compared with 4.75 cents/gal the prior week.
Toluene is used to produce on-purpose benzene through conversion units. Historically, a wide spread between the two aromatics, which favours benzene, has encouraged toluene conversion to benzene.
A marginal spread between toluene and benzene has kept conversion-unit economics quiet as of late, although some players comment that a spread of 20 cents/gal or more will encourage higher run rates at conversion units.
The spread rose quickly this month and currently stands closer to the mid-September 2019 level, according to ICIS data.
US spot benzene prices for the week ended 20 December moved higher with stronger demand and crude prices.
In contrast, spot toluene prices for the week moved lower on weakening demand.
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