MTBE sees further price gains

05 June 2000 00:00  [Source: ICB]

Naphtha prices are quoted at $266-268/tonne cif NWE. Supply is easier with material arriving in Europe from the Arabian Gulf. June swaps are at $270.50/ tonne cif NWE.

European ethylene supply is still tight in June and prices talked at $850/tonne cif NWE are notional. However, supply is expected to ease considerably in July-August following the completion of various turnarounds. Shell's expanded Moerdijk cracker is expected back up early June but DSM remains reduced at Geleen. The next available cargoes from Asia are for August arrival but European buyers appear unwilling to commit this far ahead.

Latest propylene business is reported done at DM1440/tonne cif NWE for deepsea material for July arrival. Supply is still tight and this coupled with the European holidays last week in the UK and in NWE contributed to a quiet week.

Butadiene markets are quiet with supply snug in Europe. A 2000 tonne cargo was preparing to load in the Med for Yarimca, Turkey, sold at $480/tonne CFR, under Petkim's 11 May tender.

Benzene numbers have firmed with ideas in the $375-380/tonne cif NWE range, although no deals are reported. The French monthly contract for June was settled E43/tonne higher at E396/tonne. Supply is balanced to tight. Producers' stocks have fallen slightly following operating problems, most of which have been resolved. Conoco took its HDA unit offline end May and its Immingham reformer is undergoing routine maintenance in June.

Toluene supply is very tight and prices have firmed. Nitration grade is talked at $390-400/tonne fob Rotterdam with offers of TDI quality over $400/tonne fob. An Asian cargo of about 8000 tonne is due end June.

Xylenes prices have edged up to over $400/tonne fob ARA as supply remains snug. Ato Fina is reportedly still encountering specification problems at its Antwerp unit. A producer sold 2000 tonne at $400-405/tonne fob ARA, June delivery. There are reports of a Canadian cargo arriving in Rotterdam mid-June at an undisclosed price.

Styrene markets are still tight but will ease through June as imports arrive. A 12 000 tonne Korean cargo landed early last week with 2000-3000 tonne believed to be unsold, and a second vessel is due 10 June. Spot prices are notional at $780-800/ tonne fob NWE for prompt with weaker numbers heard for late June-July. Traders quote truck prices at about DM1950/tonne FCA.

Paraxylene prices have edged up to $470-480/tonne fob Rotterdam for June. Supply has tightened marginally with a surge of buying interest in June. Offers for July were lower at $468-470/tonne fob Rotterdam with counterbids in the $450s/tonne fob range.

Orthoxylene prices are firmer on the back of stronger xylene prices. Latest deals were done at $400-405/tonne fob Rotterdam. Traders are offering prompt product at $410-412/tonne fob Rotterdam. The Petkim sales tender for 4000 tonne was awarded at $380/tonne fob Aliaga for delivery to India.

Methanol buyers have secured material in the spot market to cover their requirements for the next few weeks at prices in the DM440-450/tonne fob Rotterdam range. One purchased two 3000 tonne parcels of T1 material at $195 and $198/tonne cif NWE for mid- to end June delivery. In the US market prices have softened to 63-64 cent/gal.

MTBE spot prices continue to firm in Europe and are now talked in the $565-570/tonne fob Rotterdam range with the factor to gasoline in the mid-1.60s. US Gulf price levels are $1.45/gal.

Ammonia prices are steady in the low $150s/tonne fob Yuzhnyy range. Softer demand is expected to exert pressure on prices in June. The Turkish tender for 20 000-25 000 tonne was awarded in the low to mid-$170s/tonne CFR, cash basis, end June delivery. Spain purchased 5000 tonne at $195/tonne CFR, duty free, mid-June delivery.

Prices

Bulk chemical prices

	European contract		European spot	Change on	US contract
	q/tonne	$/tonne	$/tonne	last week	price $/tonne
Naphtha	na	na	266-268 (cif)	+5	na
Ethylene	685 (Q2)	654	850-860 (cif)	-10	683-694 (Apr/May)
Propylene@	555 (Q2)	530	670-690 (cif)	nc	606 (June)
Butadiene	455 (Q2)	432	390-410 (fob) (nom)	nc	529 (May)
Benzene	380 (Q2)	391	375-380 (fob)	+18	359 (May)
Toluene	360 (Q2) (fob)	342	390-400 (fob)	+10	na
Xylene	na	na	400-405 (fob)	+3	327 (May)
Styrenea	950-975 (Q2)	907-931	780-800 (fob) (nom)	-60	926-992 (April)
Paraxylene	530 (Q2)	545	470-480 (fob)	+30	512 (Q2)
Orthoxylene	440 (Q2)	457	400-405 (fob) (nom)	+13	441 (April)
Methanol	142 (Q2) (fob)	136	210-215 (fob)	+11	158 (May)
			195-200 (T1) (cif)	+5
MTBE	na	na	565-570 (fob)	+22	na
Ammonia	na	na	180-190 (CFR)+	nc	na

key & notes

Prices contained in this report are obtained by ECN through consultation with producers, consumers and merchants across Europe. They are intended as a guide to price levels of recent business in Europe and reflect medium to large tonnage sales. Spot prices are quoted fob (free-on-board) NW European port, cif (cost, insurance and freight), FCA (free carrier), CFR (cost and freight). T1 = imported material subject to EC common external tariffs, T2 = EC material, not dutiable, bld = blending grade, com = commercial grade, nit = nitration grade. European contract prices are quoted on a free delivered basis (FD) unless otherwise stated; initial but unfixed negotiating range is indicated (nom), na = not applicable, m = monthly contracts.
Spot prices in this issue are based on information available on 31 May 2000.
Dollar prices are based on rates of exchange on 30 May 2000
$1=q1.072; $1=DM2.097; $1=£0.668; q1=DM1.956; q1=£0.623.
The dollar equivalent range is based on exchange rates prevalent at the time of contract closure if available, or an average rate for the quarter.
* TDI grade
^@ Indicates polymer grade
^a Lower figure for barge price, higher
figure free delivery inland
⁺ Indicates duty paid
R Revised

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