Weak European MTBE demand puts pressure on factor level

23 May 2014 17:40 Source:ICIS News

LONDON (ICIS)--Demand for methyl tertiary butyl ether (MTBE) in Europe remains poor and continues to pressure the factor level against Eurobob gasoline cash barges, sources said on Friday.

Only three trades were reported taking place during the open market trading sessions this week, and the MTBE factor against Eurobob gasoline cash barges was at 1.09, unchanged from last week.

One producer said it has seen strong demand for MTBE blending in the Mediterranean, and does not believe that deals done during the open trading sessions are representative of market conditions.

“We are not prepared to go to these levels,” it said.

The producer was optimistic about improved spot demand next month.

“There should be some liquidity emerging very shortly, with people preparing their June plans,” it added.

By Neha Popat