London (Platts)--11Dec2012/845 am EST/1345 GMT
Delivered prices for North Sea cargoes of mixed butane have fallen on low demand from the gasoline-related sector in Northwest Europe, according to industry sources Tuesday. During the winter significant quantities of mixed butane are used as feedstock in the production of MTBE and alkylate or blended directly into gasoline. However, demand from this gasoline-related sector is currently at low levels. LyondellBasell, which uses butane at its Rotterdam plant to produce MTBE, is reported to be covered on supplies for most of this month. And Valero, which imports mixed butane into its Pembroke, Wales, refinery was reported by sources to have resold a North Sea cargo due to delays in starting some refinery units after planned maintenance. According to industry sources the Valero butane cargo was resold CIF Stenungsund to Austrian based petrochemicals company Borealis. Article continues below...Request a free trial of: LP GaswireLP Gaswire reports on the LPG/NGL industry every business day. It details emerging market trends, pricing, and market news for ethane, iso-butane, natural gasoline, normal butane, and propane in the Japan, Arabian Gulf, Mediterranean, Northwest Europe, and U.S. Gulf Coast markets.
Delivered prices for North Sea cargoes of mixed butane have fallen on low demand from the gasoline-related sector in Northwest Europe, according to industry sources Tuesday. During the winter significant quantities of mixed butane are used as feedstock in the production of MTBE and alkylate or blended directly into gasoline. However, demand from this gasoline-related sector is currently at low levels. LyondellBasell, which uses butane at its Rotterdam plant to produce MTBE, is reported to be covered on supplies for most of this month. And Valero, which imports mixed butane into its Pembroke, Wales, refinery was reported by sources to have resold a North Sea cargo due to delays in starting some refinery units after planned maintenance. According to industry sources the Valero butane cargo was resold CIF Stenungsund to Austrian based petrochemicals company Borealis.
Article continues below...
LP Gaswire reports on the LPG/NGL industry every business day. It details emerging market trends, pricing, and market news for ethane, iso-butane, natural gasoline, normal butane, and propane in the Japan, Arabian Gulf, Mediterranean, Northwest Europe, and U.S. Gulf Coast markets.
A Valero source Tuesday confirmed the sale of the cargo: "It has been sold and is on its way to Sweden." "Butane is looking softer," said one trader. Based on Platts data CIF prices for cargoes of mixed butane have weakened by $80/mt since the beginning of December, falling from just under $1,000/mt to a last published level Monday of $917.50/mt. With this lack of demand from the gasoline-related sector any surplus North Sea mixed butane might now have to be absorbed into the petrochemicals sector at a discount to the CIF price of naphtha. The CIF butane/CIF naphtha price ratio has weakened since the start of this month falling from about 105% to a last published level Monday of 98%, based on Platts data.--Derek Hardy, derek_hardy@platts.com--Edited by Maurice Geller, maurice_geller@platts.com
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