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, 2026.
Raffinate-1 and butadiene are commonly produced from the crude C4 cut via distillation-extraction: butadiene is extracted and raffinate-1 remains. The isobutylene portion of raffinate-1 can react with methanol to make MTBE.
On Oct. 9, raffinate-1 CIF Northwest Europe reached $1,165.19/mt, based on a naphtha factor of 1.26 and same-day naphtha at $924.75/mt, moving $7.94/mt above butadiene FOB Rotterdam at $1,157.25/mt. The move reversed a trend that had held for 10 weeks since July 31, 2026.
Raffinate-1 remained $94.36/mt below domestic butadiene FD Northwest Europe, assessed at €1,125/mt ($1,259.55/mt). European MTBE was supported by limited Asian imports, constrained tanker availability and favorable gasoline blending economics.
One producer cited "good margins on MTBE" and said buyers purchase crude C4 for raffinate-1 because "butadiene can't work."
