The North Sea spot butane market has been inactive due to a combination of thin demand and limited availability, according to industry sources.
North Sea butane is used in Northwest Europe either by the gasoline related sector in the production of alkylate and MTBE, or by the petrochemicals sector as alternative feedstock to naphtha.
Spot availability of North Sea mixed butane is currently said by sources to be quite tight with not much product forecast to be on offer prior to the end of the month.
But demand was also reported to be scant with both the gasoline related and petchem sectors said to be covered for most of April.
"I think it is fairly balanced, " said one industry source.
One reason for this lack of spot demand has been the movement of product into Northwest Europe from both the Baltic and the US Gulf.
Spot prices for CIF North Sea butane prices have recently been stable. Based on Platts data values were at $820/mt at the end of March with the last published level Tuesday at $821/mt.
The key CIF butane/CIF naphtha price ratio has not changed too much over the same period either, falling slightly from 90.4% towards the end of last month to a last published level Tuesday of 89.4%, again based on Platts data.
