Toluene demand could improve on the back of stronger benzene prices. October spot benzene prices rose 9 cents on the week, lending support to stronger TDP and MSTDP margins. TDP and MSTDP margins gained throughout last week and finished Friday at $70.11/mt and $50.97/mt respectively, according to Platts S&P Global data.

US benzene, last assessed at 275 cents/gal FOB USG and 274 cents/gal DDP USG for October, saw gains last week because of low imports from Asia and a stronger energy complex. Market participants expect these same dynamics to lead to higher pricing again this week as inventories continue to shrink.

Meanwhile, US styrene started to move higher late last week as Asia styrene prices started to rebound. Market participants have said pricing could continue that rebound this week as China reserves are still low and could lead to stronger demand for US product. US styrene was last assessed at 51.95 cents/lb ($1,145/mt) and 51.50 cents/lb ($1,135/mt), respectively, for October and November.

US OLEFINS

Spot ethylene pricing was heard rising late last week as the market saw a stronger buy interest from a producer, market sources said. As of Wednesday, ethane cracker margins had dropped 3.3 cents since October 6, and were calculated Wednesday at 19.89 cents/lb, according to S&P Global Platts data. When compared with the same time last year, the margin is 9.16 cents lower. On Friday, ethane cracker margins sat at 21.29 cents/lb, Platts data showed.

Meanwhile, October propylene contract negotiations continue, with market expectations between an increase 1 cent/lb to a decrease of 1 cent/lb, sources said. Spot PGP pricing has fallen 3.25 cents/lb since the start of the month, and sat Friday at 45 cents/lb FD USG. September PGP contracts were settled at 46.5 cents/lb, sources said.

https://www.platts.com/latest-news/petrochemicals/houston/americas-the-week-ahead-in-petrochemicals-wc-21264518