The Asian MTBE flat price plunged $31/mt Tuesday when compared with Monday on the back of lackluster demand and a weak energy complex, Platts data showed.
The FOB Singapore marker for MTBE ended at $1,181/mt Tuesday, following its sharpest fall in almost two months.
The last time the price fell to this extent was July 23, when it also fell by $31/mt to be assessed at $1,094/mt.
The marker at $1,181/mt Tuesday was also near a two-week low.
The last time it was lower was on September 6, when it ended at $1,168/mt.
Asian benchmark 92 RON gasoline prices also plunged $3.16/barrel Tuesday, to be assessed at $121.87/b, tracking November ICE Brent crude futures, which slid $3/b to $113.75/b at 4:30 pm Singapore time (0830 GMT).
A source at an MTBE producer said demand was not as high as it was last month. "Premiums [to Mean of Platts Singapore] were higher than $35/mt last month, but have now softened to below $30/mt," he said. Demand for gasoline blending remains stable and at normal levels, he added.
Asian gasoline prices have also been pressured downward due to a seasonal downturn in demand from the northern hemisphere.
A China-based trading source said that MTBE prices were "high" and buyers were waiting for prices to soften before buying. "The high prices are putting off buyers," he said.
A Singapore-based gasoline trader said: "Blending demand is not fantastic, its just OK; blend margins aren't good either and people are losing money," he said.
He also added that there was a slight oversupply in October with Taiwanese refiner Formosa Petrochemical Corp. coming out to sell two cargoes.
A source at Formosa was not immediately available for comment.
