Aromatics prices fall back

Firstly, crude oil retreated notably in early Jun, and aromatics were dragged down by drop in the cost. Secondly, US gasoline price pulled back, as US attempted to cap the price rise due to high inflation and US Fed hiked interest rate. Thirdly, aromatics prices in the US had exceeded that of gasoline, therefore, the economics of using toluene and MX in gasoline blending were less attractive.

Lastly, the trading in Asian market currently centers on goods to be loaded in Aug and it would take time for the cargoes to arrive at US, while the driving season in the US typically comes to an end in Sep. Though the duration of US driving season and whether high gasoline price could sustain longer is not completely certain this year, the market sentiment in Asia to US arbitrage has subsided