European petrochemical producers are increasingly focusing on raffinate-1 rather than butadiene extraction, as strong MTBE production economics support demand for the co-product, market participants said in the week to Oct. 12.
Raffinate-1 and butadiene are commonly produced from the crude C4 cut in Europe via a distillation-extraction process: butadiene is extracted, and raffinate-1 is what remains. The isobutylene portion in raffinate-1 is separated and reacts with methanol to produce MTBE.
On Oct. 9, raffinate-1 CIF Northwest Europe reached $1,165.19/mt, moving $7.94/mt above butadiene FOB Rotterdam at $1,157.25/mt, reversing a trend sustained for 10 weeks since July 31, 2026.
Raffinate-1 nevertheless remained $94.36/mt below domestic butadiene FD Northwest Europe, which was assessed at €1,125/mt ($1,259.55/mt).
The change was driven primarily by demand for MTBE, which remained supported by limited Asian imports, constrained tanker availability and favorable gasoline blending economics.
