The inventory level of toluene in East China was heard at 30,000 mt this week, down 25% from the week before and the lowest in more than ten months, Platts data showed Thursday.
The fall comes amid a reduction in cargo arrivals and tight domestic supply. The last time East China toluene stocks were lower was November 4, 2011, at 22,500 mt.
One trader estimated China's imports of toluene could fall as low as 20,000 mt in September due to delays caused by Typhoon Bolaven. The country imported 80,675 mt of toluene in July, down 0.2% from June, the most recent data from Chinese customs showed. August data has yet to be released
In addition, Sinopec Sabic Tianjin Petrochemical Co's Tianjin aromatics plant, which can produce 400,000 mt/year of paraxylene, 200,000 mt/year of benzene, 200,000 mt/year of toluene and 150,000 mt/year of mixed xylenes, was shut for turnaround early August, removing some toluene supply from the market. The plant will restart end September, a company source said.
Separately, higher gasoline prices have raised margins for blenders, giving them more leeway to buy higher-cost toluene.