SINGAPORE, March 31 (Reuters) - Asian methyl tertiary butyl ether (MTBE) prices climbed higher from week-ago levels as traders turned their focus to better demand for May cargoes from China and soaring gasoline prices in the United States.
Traders quoted the octane-enhancer at $330-$335 a tonne on a free-on-board Singapore basis on Wednesday, up from last week's $327 a tonne.
"Asian spot MTBE prices are a touch stronger. May demand is looking better. It's starting to pick up now," said a trader in Singapore.
Traders kept their eyes on soaring U.S. gasoline prices, which shot to an all-time high following an explosion and fire at the third-largest refinery in the United States.
The fire, at a BP Plc oil refinery in Texas, sent U.S. unleaded gasoline futures to a record high at $1.1775 a gallon, beating a May 2001 record at $1.1750 a gallon.
A spokesman at BP in London has said the fire had been doused.
High prices for the octane-booster in the U.S. at well over $400 a tonne could draw more supply from the region although no fixtures have been reported in the last week, traders said.
Sources said in mid-March at least one refiner in Taiwan had loaded 5,000 to 6,000 tonnes of MTBE for the U.S. market to meet demand ahead of the summer driving season.
Prices for high-octane gasoline in the benchmark Singapore market jumped to an 11-week high of $47.99 a barrel based on 97-octane gasoline on Wednesday.
The price was the highest seen since January 14 when the market was valued at $49.25 a barrel.
Gasoline prices have been on an uptrend since late February due to tight supply from China and healthy demand across the region.
"It's about time that MTBE started catching up with these high gasoline prices," a trader in Malaysia said.
MTBE prices have been in the doldrums due to slow demand in Southeast Asia and high inventories in China, the region's biggest buyer.
April imports into China have been estimated at a low 15,000 tonnes following heavy imports at the start of the year.
But traders said May demand from China was picking up and quoted cost-and-freight cargoes to southern China at $335 to $340 a tonne, up from last week's $330-$335 a tonne.