The availability of spot butane at the French Mediterranean port of Lavera is tight due to petrochemicals and export demand, according to industry sources Tuesday.
During the summer, surplus butane from refineries at Lavera is used as an alternative feedstock to naphtha at the LyondellBasell and Naphtachimie steam crackers with other product going to export to meet domestic demand in Egypt, Morocco and Tunisia.
Availability from Lavera is, however, reported to be very thin with all surplus tons going to either petchems or nominated exports for contracts leaving no supplies for spot sales. "It remains pretty tight," said one trader.
Based on Platts data, spot prices for FOB Lavera butane started this month at $650/mt, rose to just over $720/mt at the end of the first decade, dipped to around $690/mt by the middle of May but then increased again to reach a last published level Friday of $705/mt.
