NWE blendstocks market sees first competitive ETBE indication in eWindow

London — The ETBE FOB AR barge outright price was assessed by S&P Global Platts at $303/mt Monday, marking the first time Platts has assessed off an outstanding competitive offer in the eWindow communication tool for its Market on Close assessment process.

On April 20 Platts started publishing bids, offers and intentions to trade in its MOC process for ETBE barges and differentials in the eWindow communication tool.

The resulting assessment was based on an offer seen in the eWindow at a $111/mt differential between the Platts FOB AR ETBE barge price and FOB NWE MTBE barges.

The premium -- the relationship of the ethanol-derived fuel ether ETBE to spot MTBE price -- was assessed at $110.75/mt on Monday, down $75/mt from Friday.

The narrowing spread highlights the slow demand for gasoline blending components, amid global coronavirus lockdowns that limit any driving incentive across Europe and the rest of the world.

Due to its bio-content and use in fulfilling bio-mandates for transportation fuels, ETBE has been assessed as a premium over MTBE since 2012 when the assessment initiated, according to S&P Global Platts data.

Biofuel blending is mandated under Europe's Renewable Energy Directive, with the revised version, RED II, setting the framework up to 2030.