The margins of toluene disproportionation to produce benzene and MX got squeezed

The margins of toluene disproportionation to produce benzene and MX got squeezed. Though benzene price hiked in Jan, TDP margins reduced as the spread of MX to toluene narrowed. The margins were less supportive to toluene price.

In Jan, large amount of toluene and MX cargoes was expected to arrive at East China, especially for MX. However, port inventory remained low, as delivery from storage reserves was fast. Blending demand was good with buyers restocking refined oil products prior to the Spring Festival holiday starting from end-Jan, supportive to toluene and MX.