Spot prices for delivered coaster cargoes of butane in Northwest Europe are being supported by tight refinery availability, according to industry sources this week.
During the winter significant quantities of refinery butane are blended into gasoline to increase the vapor pressure with any surplus product usually exported on coaster vessels which are generally between 1,000 and 3,000 mt in size.
However, the spot availability of good quality refinery butane has recently been quite tight with few tonnes offered to the market.
Although demand for CIF coaster butane from the gasoline blending sector is currently relaxed industry sources have reported good demand for spot tons from petchems, which can use butane as an alternative feedstock to naphtha.
"There is demand for good quality product," said one source.
Based on Platts data spot prices for CIF coaster butane have steadily increased in February moving up by $20/mt from the low $960s/mt to a last published level Wednesday of $$982.50/mt.
