US export demand boosts Europe MTBE market

14 March 2014 16:59 Source:ICIS News

LONDON (ICIS)--Export demand from the US Gulf coast continues to boost sales of methyl tertiary butyl ether (MTBE) in Europe, sources said on Friday.

A production outage in the US Gulf coast has resulted in tight supply in the region, leading to South American customers having to source their requirements from Europe.

One trader said it has seen good demand in both the Mediterranean and ARA (Amsterdam-Rotterdam-Antwerp) regions, with the upcoming switch to summer grade gasoline boosting interest among blenders.

Participants note strong buying interest from consumers on term contracts, but it is thought that these purchases are currently sufficient to satisfy MTBE demand and is the reason why there was limited trading activity again seen in the open market trading platform this week.

By Neha Popat