11 February 2011 07:27 [Source: ICIS news]
By Felicia Loo
SINGAPORE (ICIS)--China’s methyl tertiary butyl ether (MTBE) prices are expected to rise further in the coming weeks, buoyed by expectations of a possible hike in domestic pump prices as global crude futures march towards $102/bbl (€75/bbl), traders said on Friday.
Local MTBE prices have increased to yuan (CNY) 7,600/tonne ($1,153/tonne) in the booming Chinese coastal cities from the east to the south, following the week-long Lunar New Year holidays that started on 2 February, they added.
Prior to that, prices stood at CNY7,400/tonne in eastern ?xml:namespace>
“MTBE prices in
By 0344 GMT, global Brent crude futures were up 66 cents at $101.53/bbl.
World’s top energy user
This was far above the 4% that was required for adjustments.
Possible adjustment to oil product prices may range between yuan (CNY) 400/tonne ($60.70/tonne) and CNY500/tonne, based on calculations from ICIS service C1 Energy.
The price hike could be implemented in mid-February at the earliest, market sources had said.
As spring approaches, Chinese MTBE demand would increase with more motorists on the roads, traders said.
In a sign of strong gasoline consumption, car sales in
“The market is hoping for the pump price increase to take place soon,” said another Chinese player.
At present, Chinese MTBE buying indications of $940/tonne CFR (cost and freight).
“At this rate, market players rather sell MTBE to blenders in
The naphtha market was getting weaker because of the start of the peak cracker maintenance period this month.
The margin was valued at a six-month high of $11.60/bbl on Thursday, traders said.
($1 = €0.74/ $1 = CNY6.59)
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