US exports of MTBE remained on the firmest pace in seven years with a primary destination receiving a record volume of material in June, US Energy Information Administration data showed Wednesday.
June US MTBE exports declined on both a month-on-month and year-on-year basis, but the year-to-date pace stayed at its highest since 2009 with exports to Mexico at a 12-year high even with no exports reported to Venezuela, the EIA data showed.
June US MTBE exports totaled 1,277,000 barrels, down 24.6% from 1,694,000 barrels in May and 14.6% lower than 1,496,000 barrels in June 2015, the data showed.
The year-to-date export total of 8,378,000 barrels represents a 41.7% increase from 5,912,000 in January-June 2015 and the highest since 9,475,000 barrels in January-June 2009.
Mexico attracted the majority of the exports with 1,064,000 barrels, the highest in at least 12 years, the US EIA data showed. Mexico has imported 4,856,000 barrels of MTBE through June.
The EIA data include only outright MTBE exports and do not reflect MTBE blended into gasoline and then exported.
The exports to Mexico appear set to maintain a firm pace even under updated fuel standards in the country.
Mexico's changes to fuel specifications will maintain MTBE's share in the gasoline blending pool, with ethanol barred from major metropolitan areas.
The changes, which will take effect in October, should not impact the heavy imports of MTBE, sources said.
"MTBE demand is going to stay strong with firm demand for the foreseeable future," a US Gulf Coast producer said.
Mexico's demand for imported MTBE, already supported by growing gasoline demand and refinery issues, will see a further boost in 2020 as the metropolitan areas of Guadalajara and Monterrey adopt the gasoline specifications used in the Mexico City area, a source added.
Exports to Chile remained in line with levels seen for much of the year with 206,000 barrels.
Venezuela, typically the second largest destination for US Gulf Coast MTBE, did not show any exports reported in June in the EIA data. Venezuela has imported 1,840,000 barrels so far this year.
US Gulf Coast MTBE pricing averaged $1.8178/gal FOB USG in June, down 35.5% from an average of $2.8195/gal FOB USG in June 2015, Platts data showed.
Platts assessed US Gulf Coast MTBE on Wednesday to $1.6520/gal FOB USG, a two-week low.
