OREANDA-NEWS.  Toluene markets held largely stable as the fob South Korea market was given a lift by gains in China. Markets were cautiously awaiting the outcome of the referendum on whether UK should remain in the EU.

August cargoes were bid at $570/t, while September was discussed between $580-593/t. The July-August intermonth spread was rolled over at $6/t in contango because of the lack of firm negotiations. The August-September intermonth spread was also rolled over at $5/t in contango, with the spread bid at $8/t today and offers replying at $3/t in contango.

The cfr China market rose because of reduced inventories in east China, while consumption was higher than expected. Bids for July cargoes were discussed between $590-605/t for premium grade toluene with a minimum purity of 99.5pc. Bids were later placed for second-half July cargoes at $599/t. Domestic ex-tank prices in east China also rose as sentiment improved on the lower inventories. Prompt cargoes were negotiated between 4,685-4,700 yuan/t, which is about $598/t on an import parity basis, while forward cargoes for July traded between Yn4,700-4,720/t.

Prices in India continued to hold steady between 43-43.50 rupees/kg because of its high inventories of toluene.

Mixed xylenes

No firm bids and offers emerged by the close of the trading session as trading firms withdrew to the sidelines.

Buying indications were steady at $675-680/t fob for second-half July shipments, while selling ideas were also hovering at $685-690/t fob.

Buying indications were placed around $685/t cfr China/Taiwan.

There were no discussions for August deliveries. The July-August intermonth time spread was rolled over at a $5/t contango in the absence of firm discussions.

Paraxylene

PX margins staged a rebound, returning to their highest level in more than one week, following strong gains for PTA derivatives on the Zhengzhou commodity exchange.

Bullish bids from South Korea-based producers towards the end of the trading session supported discussion levels. There were also price differences of about $3/t between cargoes of open and Asia origin amid strong demand for prompt deliveries.

Bids for August deliveries started early in the session at $820/t cfr against offers at $830/t. A single offer for a cargo of open origin was later dropped to $822/t cfr where a deal was possibly done.

Bids for August shipments were later placed at $824/t and $825/t where another 10,000t is likely to have traded. Subsequent discussions for August were hovering around $825-829/t.