16 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The ethyl tertiary butyl ether (ETBE) premium over methyl tertiary butyl ether (MTBE) firmed this week, owing to improving demand in Europe, participants said on Thursday.
The ETBE premium is now at $60-100/tonne, an increase of $40/tonne (€31/tonne) from last week.
Improving demand for gasoline has resulted in a corresponding increase in demand for gasoline blending components such as ETBE.
“It's normal seasonality to see higher gasoline demand in May,” one producer said.
Sources say higher fuel ethanol values may also have contributed further to the upward pressure on ETBE premiums.
Prices for fuel ethanol German RED certified T2 material were this week at €670-675/cbm FOB (free on board) Rotterdam (Rdam), their highest since October 2012, according to ICIS data.
Higher trades of MTBE were also heard in the spot market.
The average MTBE trade price increased by $33/tonne over the past week, leading outright ETBE prices to trade at $1,133-1,173/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp).
($1 = €0.78)
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