China January-October MTBE imports exceed full-year '09 volume

23 November 2010 10:51  [Source: ICIS news]

SINGAPORE (ICIS)--China imported an estimated 550,000 tonnes of methyl tertiary butyl ether (MTBE) in the first 10 months this year, up 10% from volumes shipped in for the whole of last year, traders said on Tuesday.

The world’s top energy user took in half a million tonnes of MTBE in 2009, they said.

“Car ownership is higher in China, and demand for blending is also strong,” said a trader in Beijing.

Car sales in China rose 19.3% year on year in September to 1.2m units, according to a Reuters report, quoting the China Association of Automobile Manufacturers (CAAM).

Private Chinese oil blenders had to plug a domestic shortfall, resulting in a surge of MTBE imports in recent months, traders said.

Prices of MTBE, which is used as oxygenate to increase the octane value of gasoline, were quoted at yuan (CNY) 7,300-7,400/tonne ($1,098-1,113/tonne), they said.

A 5,000-tonne MTBE cargo of Middle Eastern origin was traded at $870-880/tonne CFR (cost and freight) China, for delivery in the first half of December this week, traders said.

“China is short of high-octane petrol. The consumers are more affluent and they [would] rather stick to higher quality petrol,” said one trader.

($1 = CNY6.65)

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By: Felicia Loo

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