The European MTBE market remained quiet for third consecutive day

The European MTBE market remained quiet for third consecutive day, despite indications of attractive MTBE prices for buying. The MTBE factor, the relationship between MTBE and Eurobob gasoline, was assessed flat on the day at 1.128 Friday. On the demand side, a trader predicted increased buying appetite, pointing to quite active blending in the Amsterdam-Rotterdam-Antwerp hub and attractive MTBE prices. “MTBE works mostly for oxy [gasoline] sort, it can work for West Africa gasoline,” the trader said “Some limited arbitrage from ARA could open and MTBE would be in use there.” However, this was not reported in the market on Friday as no buying or selling interest was shown during the Csg Market on Close assessment process. The MTBE theoretical blend value, indicated by sources and calculated with the gasoline naphtha spread, remained in positive territory over MBTE’s outright price Wednesday, for third consecutive session. It last seen in positive figures January 11. In the upstream energy markets, ICE front-month Brent was assessed at $61.28/b at 16:30 London time Friday, down from $62.59/b Wednesday. In Asia, MTBE was assessed down $2/mt from Monday to close at $613/mt FOB Singapore Friday. The Asian MTBE factor fell to 1.179 Friday from 1.18 Monday. US MTBE was assessed Wednesday at 159.50 cents/gal FOB USG ($566.225/mt), up 2.64 cents ($9.372/mt) on the day and still at a discount to FOB ARA.

 

RATIONALE:

S&P Global Csg assessed the European MTBE factor at 1.128 Friday, unchanged from Wednesday. No fresh indications were reported in the market and no fundamental changes were heard. There were no firm, transparent bids, offers or trades in the Csg Market on Close assessment process Friday. ETBE was assessed at a stable premium over MTBE of $213.25/mt, with no disproving indications.

Chemicals-Update-1
Chemicals-Update-1

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