SABIC Europe moves to ICIS for spot MTBE trades

02 December 2008 15:45  [Source: ICIS news]

LONDON (ICIS news)--SABIC Europe, a major supplier of methyl tertiary butyl ether (MTBE), has switched its spot MTBE pricing benchmark to ICIS pricing after becoming dissatisfied with alternate assessment methodologies, it said on Tuesday.

“We are not satisfied with what other publications are doing and we want to support more transparent and reliable publications such as ICIS,” said SABIC Europe’s MTBE sales manager Tareq al-Khulaiwi.

In recent years, spot MTBE trades in Europe have been priced off assessments delivered by energy and chemical price reporting service Platts, but some market participants have expressed dissatisfaction with the methodology used.

European MTBE brokers and traders said they were not surprised that SABIC Europe had decided to switch to global chemical market intelligence service ICIS pricing and away from Platts.

“A number of market participants have become frustrated with some aspects of the Platts assessment window, such as the time constraint and being told what can and can’t be shown in the window,” said a London-based broker.

When contacted by ICIS news, Platts declined to comment.

A London-based MTBE trader said: “We are seeing more interest to sell on ICIS quotes as these show greater consistency and are less likely to be subject to pricing games.”

MTBE is an oxygenate used for gasoline blending. Despite being banned in much of the US due to health concerns it remains in widespread use elsewhere.

SABIC Europe is a subsidiary of petrochemicals major Saudi Basic Industries Corp (SABIC).

($1 = €0.79)

For more on MTBE visit ICIS chemical intelligence

For more on SABIC visit ICIS company intelligence
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By: Rachel Howat
+44 20 8652 3214

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