MTBE Market Prices Remain Stable at Low Levels in July

July 31st news

According to the commodity market analysis system, the MTBE market in China was consolidating at a low level in July. From July 1st to 31st, the price of MTBE fell from 5,112 CNY/ton to 5,050 CNY/ton, with a price decrease of 1.22% during the period. The maximum fluctuation was 4.57%, and the price decreased by 25.05% year-on-year.

At the beginning of the month, the MTBE market in China mainly showed narrow fluctuations, adjusting along with the changes in crude oil prices.

In the early part of the month, the Chinese MTBE market was weak and consolidating, with prices operating in a low range. In the early part of the week, the market showed a significant decline, mainly due to an increase in resource supply and a weak trend in crude oil, leading manufacturers to offer discounts to sell their products. Currently, the operating rate of facilities is relatively high, and the supply of resources is ample. With limited substantive positive factors on the demand side, the Chinese MTBE market continues to operate in a weak state.

Mid-month, after the Chinese MTBE market fell to a certain low point, it slightly rebounded. The signing of many export orders provided a boost, and some manufacturers prepared in advance for port aggregation, reducing the volume of exports. With downstream operators carrying out periodic stock replenishment, the MTBE market saw a slight increase, and manufacturers were inclined to maintain prices while increasing sales volume.

Late in the month, there were some minor adjustments in China's MTBE market. Some manufacturers focused on exports, leading to a noticeable decrease in external sales. Downstream buyers still had some purchasing demand, and overall, the trading atmosphere was decent.

MTBE China Production Price Average Trend Chart:

Cost Aspect: In July, international crude oil prices showed a slight downward trend, with the average price falling compared to June. In the first half of the month, the U.S. extended the deadline for trade negotiations, easing market concerns about tariff talks. Additionally, the traditional peak consumption season in the U.S. continued, supporting an increase in international oil prices. In the middle of the month, the U.S. sanctions plan against Russia was unlikely to be implemented in the short term, coupled with OPEC+ production increases still underway, causing international oil prices to decline. In the latter half of the month, the U.S. reached a new trade agreement with the EU, significantly reducing market concerns about tariffs. Furthermore, potential supply risks arose from possible new sanctions imposed by the U.S. on Russia, leading to an increase in international oil prices.

Demand Side: Downstream gasoline demand faces challenges as international oil prices may decline, while the new round of refined oil retail price caps is hovering near a downward adjustment. The refined oil market struggles to find substantial positive support, leading traders in the intermediate links to place rational orders, and downstream users maintaining moderate inventory levels for both purchasing and sales. Therefore, refinery operations still focus on ensuring smooth shipments and volume sales. MTBE demand is influenced by bearish factors.

On the supply side, at the beginning of the month, after Huayi Chemical's plant resumed operations, resource supply further increased. Maoming Shihua maintained its planned startup schedule, while also observing the production timing of some new plants such as Kaiyi New Materials. In the middle of the month, Anqing Taifa's plant started up, and Kaiyi New Materials may begin shipping products, further increasing resource supply. Dongming Qianhai's plant is scheduled to halt operations, which will reduce resource supply. Overall, China's MTBE supply situation is influenced by bearish factors.

As of July 31, statistics on MTBE factory prices for some production enterprises:

As of the close on July 30, Asian MTBE market prices closed up by $16.68/ton compared to the previous trading day, settling at $677.25-$679.25/ton FOB Singapore. European MTBE market prices closed up by $1/ton compared to the previous trading day, settling at $872.49-$872.99/ton FOB ARA. U.S. MTBE market prices closed up by $19.02/ton compared to the previous trading day, settling at $779.90-$780.25/ton FOB Gulf (equivalent to 220.21-220.31 cents/gallon).

Market Forecast Currently, raw material prices are maintaining a high level, with relatively sufficient cost support. MTBE analysts believe that the Chinese MTBE market trend will likely remain firm.