Spot butane prices across cargoes, CIF coasters and barges pushed to three-and-a-half-month highs relative to naphtha on Thursday, on restricted supply in Northwest Europe.
The spot market for large CIF cargoes was assessed at 81% relative to naphtha on Thursday, the highest since April 3.
Spot butane CIF coasters were assessed at 83%, also the highest since April 3, and prices for FOB barges basis ARA also rose to a more than three-month high.
Those prices rose on lower supply in the region, due to maintenance at Grangemouth's field-grade export terminal, and an increased pull for product onto the FOB coaster market to serve Moroccan demand in the West Mediterranean market, according to sources.
"Grangemouth is out, there is not much available," a source said.
The terminal produces five cargoes of 3,700 mt of field-grade butane each month, according to sources close to the market.
The planned maintenance is expected to continue until at least the end of August, according to sources.
Meanwhile, product in the Northwest region was being redirected onto the FOB coaster market.
That product is being taken down to serve Moroccan consumer demand, according to sources, as the regional product in the West Mediterranean has largely been booked by petrochemical buyers.
That has left buyers looking to the North, pushing FOB coaster prices to a more than three month high of 85% relative to naphtha on Wednesday, at a premium to CIF coasters.
"You have to go to the North to find [product]," to serve Moroccan demand, a source in the Med market said Thursday.
Those prices came off on Thursday, with value sinking to 79%, following an offer in the broker window.
Regular buying interest from petrochemical buyers has also been underpinning the market. Petchems use butane as an alternative feedstock to naphtha when prices are favorable.
The recent increase in prices has undercut that buying interest, a source said earlier this week.
"That is why I think product is a little too high, and that is why it is hard to do any deals," a market source said. "The bridge between the buyers and sellers is not really there."
Others disagreed, with one source saying demand from petrochemical buyers continues to be "healthy", and buying interest is expected for CIF coasters up to 85% relative to naphtha.
