US Gulf Coast MTBE declined to its lowest level Monday in nearly seven years, pressured downward due to falling global pricing and weakening gasoline ahead of an expected period of maintenance along the US Gulf Coast.
US MTBE was assessed at $1.4540/gal FOB USG, down 3.45 cents from Friday and at the lowest level since reaching $1.4150/gal FOB USG on February 25, 2009, according to Platts data.
Weakness in crude pricing has impacted gasoline values. Front-month NYMEX crude came to its lowest point since December 2003 on Monday at $31.41/b, and prompt ICE Brent reached its lowest level since April 2004 at $31.55/b.
The anticipated tightness in the Americas region has not yet materialized to help offset the impact of lower gasoline prices, sources have said. A period of MTBE turnarounds has been expected to tighten supply amid consistent demand for the octane booster in Latin American countries.
Planned maintenance in the US Gulf Coast region will tighten supply, but the situation should not be as drastic as last year, market sources have said.
Enterprise Products Partners, LyondellBasell and TPC Group have been expected to undergo turnarounds in the first quarter. A LyondellBasell spokeswoman declined to comment on operational matters, and TPC Group and Enterprise could not be reached for comment. Huntsman said the company does not have plans for turnarounds in 2016.
In addition to having one fewer producer under maintenance, supply availability from Europe appears to be better than it did at the start of last year, a source said.
European market participants anticipate exports into the Americas region during the turnaround period, sources in the region said.
European MTBE also stood at nearly a seven-year low on Monday, with $480.75/mt FOB ARA representing the lowest since late February 2009.
Asian MTBE has been mostly below $600/mt for the last two months, assessed Monday at $546/mt FOB Singapore, with gasoline nearing a seven-year low.
