20 September 2012 11:07 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s methyl tertiary butyl ether (MTBE) prices plunged by $53/tonne (€41/tonne) on Thursday to land at a seven-week low, tracking losses in the crude futures market, traders said.
MTBE prices were assessed at $1,101-1,103/tonne FOB (free on board) ?xml:namespace>
“Brent [crude] fell by close to $5/bbl in just one day, MTBE prices have to move down in tandem,” a Singapore-based trader said.
“Demand is already not good for now. With oil futures collapsing, there is no support on MTBE prices at all,” a Chinese trader said.
“Both gasoline and naphtha markets are still in backwardation. There is no sign of improvement in demand,” a second Chinese trader said.
Intermonth spread between October and November for gasoline was at a backwardation of about $3/bbl on Thursday, indicating poor outlook for forward months, traders said.
MTBE is used as an additive to boost octane levels in gasoline.
“[MTBE] prices may just fall below the $1,100/tonne [FOB
($1 = €0.77)
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