Higher gasoline prices boost MTBE values in China

04 September 2009 04:17  [Source: ICIS news]

SINGAPORE (ICIS news)--The Chinese government’s move to increase retail gasoline prices and the country’s increasing demand have boosted methyl tertiary butyl ether (MTBE) values, buyers and sellers said on Friday.

Price discussion levels for MTBE into China were up $5/tonne from last week at $845-855/tonne (€592-599/tonne) CFR China, according to data from global chemical market intelligence service ICIS pricing.

China raised its domestic gasoline and diesel prices by yuan (CNY) 300/tonne ($44/tonne), or 4%, starting 2 September, in line with recent uptrend in international crude oil prices.

This pushed the gasoline benchmark price in the country to CNY 6,810/tonne, which fueled additional buying interest for MTBE from blenders, market sources said.

MTBE is used as octane booster and oxygenate in gasoline.

MTBE values have been exposed to upward pressure due to tight conditions and a dearth in feedstock supplies in Asia. The higher gasoline prices in China are adding to the pressure, sources said.

($1 = €0.70 / $1 = CNY6.83)

For more on MTBE visit ICIS chemical intelligence
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By: Gabriela Wheeler
+1 713 525 2600

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