Butane is blended into gasoline to increase vapor pressure, which makes it easier to start engines in cold weather.
"Butane is so expensive," a gasoline trader said, adding that at current levels the spread between summer and winter grade was narrower this year because less butane had been blended into gasoline.
Low demand from the gasoline blending sector and limited demand for MTBE production, where only high quality product can be used as feedstock, has resulted in few outlets being available for any surplus butane on offer in the ARA region.
Earlier this week butane barges were said by sources to have traded at the equivalent of around $700/mt FOB.
But by mid-week another barge cargo was reported to have been concluded at $676/mt CIF Flushing, albeit it on fairly prompt delivery dates of this weekend, which sources said would equate to a FOB level in the $660's/mt FOB.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
