22 November 2012 07:00 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) has sold via tender one cargo of methyl tertiary butyl ether (MTBE) for mid-December loading from Mailiao at a low single-digit premium, traders said on Thursday.
The 5,000 tonne parcel, which was sold late in the previous week to a Chinese trader, fetched a premium said to be at a low single digit to market quotes FOB (free on board), the traders said.
The final destination of the purchased lot remains unknown, they added.
“The premium is between $1-5/tonne, which is a lower premium than the previous spot sales. This indicates a softer market,” a source close to FPCC said.
The source added that if two or more parcels are offered, discounts will be yielded instead of premiums.
“It is the year-end, no one is interested to keep high stocks and it is the seasonal driving lull. So, it makes no sense to offer more lots,” the source said.
As MTBE is an octane booster for gasoline, the declining usage of cars during winter in Taiwan weakens demand for MTBE.
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