The MTBE arbitrage window to the US Gulf from Europe has shut amid declining US prices, according the S&P Global Platts data, having been open since October 13.
US prices fell $16/mt Wednesday to $735.75/mt FOB USG, meaning prices have fallen a total $42.50/mt over the past three sessions amid declining offers during the US Platts Market on Close assessment process.
Over the same period, European prices have risen $6/mt to $707/mt FOB ARA. So, recent price moves have narrowed the US premium over Europe to $28.75/mt.
Prior to the decline, European market sources had noted a lack of firm export opportunities into the US Gulf. Exports were, however, heard from the Persian Gulf into Mexico.
The European MTBE arbitrage to the US reopened on October 13 following strong bidding activity during US Platts MOC at the time.
Prior to that, the traditional export opportunity to the US Gulf from Europe closed in June as market participants had once again proved the US Gulf MTBE value lower through their offers during in the Platts MOC process.
Exporters consider a spread of around $40-$50/mt to be enough to work most cargo volumes.
