01 August 2011 04:40 [Source: ICIS news]
By Felicia Loo
A major Chinese seller withdrew its offer to sell 4,000 tonnes of bonded MTBE last week.
The seller’s initial offer stood at $1,140/tonne (€787/tonne) FOB (free on board)
Around 10,000-12,000 tonnes of MTBE material were being resold into the Singapore market in recent weeks at $1,120/tonne FOB China, or equivalent to $1,165/tonne CFR (cost & freight) Singapore, the traders added.
The cargo was subsequently sold at $1,140/tonne FOB
“MTBE demand in
Domestic MTBE prices in
Buying ideas were at CNY8,400-8,500/tonne, while selling indications were at CNY8,600-8,700/tonne, the traders said.
“The [country’s] gasoline stockpiling activity will heighten in September, ahead of the Golden Week holidays in October,” a trader in
There will be hundreds of thousands of motorists on the roads during Golden Week, which is a week-long holiday celebrating China's National Day.
Passenger car sales in
Overall gasoline demand remains stable in
Chinese market players were earlier compelled to resell MTBE overseas because of weak domestic consumption, the players said.
In addition, a price rally in regional trading hub
The price spread between 97-octane gasoline and 92-octane gasoline widened by $1.70/bbl to $7.10/bbl in early July, signalling a healthy demand for blending as the spread was well above the break-even level of $6.00/bbl.
It is unusual for
A major Chinese oil company imported only 10,000 tonnes of MTBE from late June this year to early July, down from a monthly average of 30,000 tonnes because of poor demand, the traders added.
Sinopec has been tightening the quality control on sourcing gasoline from private blenders since 21 May, which includes reducing the olefin content in gasoline from 30% to just above 8%.
Sinopec outsources around 14% of its gasoline requirements from independent refineries, traders or blenders.
Benchmark prices of MTBE in
Prices on a CFR China basis rose by $40-60/tonne to $1,080-1,120/tonne during the same week.
($1 = €0.69, $1 = CNY6.44)
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