Europe ETBE premiums over MTBE rise on improved demand

05 December 2013 23:59 Source:ICIS News

LONDON (ICIS)--European ethyl tertiary butyl ether (ETBE) premiums over methyl tertiary butyl ether (MTBE) edged up this week on improved buying interest seen in the market, sources said on Thursday.

Although ETBE premiums rose slightly by $20/tonne (€15/tonne) FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp), market participants said they didn't believe this represented an improvement in market conditions.

“Premiums have edged up on a small spike in demand,” one producer said.

“They’ll likely fade away again in the run up to Christmas and new year,” he added.

Another producer said demand from its customers on term contracts were at low levels, although it was in line with its seasonal expectations.

Participants remain hopeful for a significant improvement in the first quarter of 2014, in line with the higher demand for gasoline that is traditionally seen in Europe.

Outright ETBE prices were assessed at $1,061-1,091/tonne FOB ARA, up $21/tonne from last week.

($1 = €0.74)

By Neha Popat