The Asian MTBE flat price plunged $14/mt to be assessed at $1,136/mt Thursday compared with Wednesday, to reach a 12-week low on dwindling demand and weaker gasoline prices, Platts data showed.
The last time it was lower was on July 26 when it reached $1,112/mt, and the MTBE factor -- which measures the ratio between the daily assessments for FOB Singapore MTBE and 92 RON gasoline -- was assessed at 1.164 and 92 RON gasoline at $113.25/barrel.
The FOB Singapore marker has seen consistent losses since last Friday, losing $87/mt, or 6% of its value in just one week.
The Asian 92 RON gasoline price was assessed Thursday at $120.92/barrel, with the MTBE factor ending at 1.112, the lowest in close to five months. It was last lower on June 6 when it was assessed at 1.098.
Market participants said they expected MTBE prices to nosedive in the fourth quarter as gasoline and blending demand falls.
The MTBE premium to Mean of Platts Singapore also trended lower this week with sources quoting mid-$20s as compared with mid-$30s quoted a month ago.
In addition, Sietco was seen offering MTBE in the Platts Market on Close assessment process Tuesday. The company offered down $25/mt from $1,198/mt during the MOC, reflecting weaker sentiment and waning demand.
Traders said Wednesday that MTBE storage tanks in Singapore were near full and some traders were said to be offering aggressively to attract buyers in order to clear tanks to make space for incoming cargoes.
Taiwan's Formosa Petrochemical's tender to sell 5,000 mt of 50 ppm sulfur MTBE for loading over 23-27 November was awarded to a trader at a small discount to Mean of Platts Singapore. This compares with a premium of around $5-10/mt for similar sized cargoes for October loading.
