Trade Resources Industry Views Spot Prices for Barge Lots of Butane Loading Have Gained Support From Petrochemical Demand

Spot Prices for Barge Lots of Butane Loading Have Gained Support From Petrochemical Demand

Spot prices for barge lots of butane loading in the Amsterdam-Rotterdam-Antwerp area have gained support from petrochemical demand, according to industry sources.

Surplus butane from ARA refineries can be absorbed into the MTBE, gasoline blending or petchem sectors.

But demand from the MTBE sector is currently quite weak, with LyondellBasell, which normally imports barge butane as feedstock for MTBE, exporting butane from its Rotterdam plant.

Industry sources said buying interest for gasoline blending has also been limited, with most requirements currently being covered by cheaper olefinic coaster butane.

"The blenders are not there," said one source.

Petrochemicals, however, have shown a healthy appetite for butane and a number of barge lots have recently been reported sold into this sector.

Based on Platts data, the key CIF barge butane/CIF naphtha price ratio was around parity at the beginning of February, weakened to around 95% by mid-month before increasing again on demand from petchems to a last published level Tuesday of just under 97%.

Source: http://news.chemnet.com/Chemical-News/detail-1829550.html
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Spot ARA Butane Prices Gain Support From Petrochemical Demand
Topics: Chemicals