MTBE market prices slightly increase in China

August 8th News

According to the commodity market analysis system, from August 4 to August 8, the price of MTBE increased from 5030 CNY/ton to 5120 CNY/ton, with a price increase of 1.79% within the period, a 2.91% increase compared to the previous period, and a 24.15% decrease year-over-year. The Chinese MTBE market operated firmly, with prices slightly rising. Large manufacturers such as Lihua Yi exported goods for port collection, with no external sales, providing significant support to the market. At the same time, some large manufacturers focused on fulfilling export orders, reducing the volume of goods released to the domestic market. With this support, MTBE manufacturers maintained their prices while shipping.

MTBE China production price average trend chart:

Cost Aspect: Regarding crude oil, international oil prices have clearly declined. The main bearish factors include OPEC+ production increases putting downward pressure, a temporary easing of geopolitical tensions, and continued weakness in the global economy. As of August 7, the settlement price for Brent crude oil futures contract for October delivery was reported at $66.43 per barrel.

Demand Side: Downstream gasoline markets have been experiencing continuous declines in international crude oil futures, leading to weak and downward trends in refined oil prices. The main reason is that the persistent weakness in crude oil continues to dominate the oil market, creating a cautious atmosphere among market participants. Traders in intermediate links show little intention to place orders, while gas station operators mainly focus on replenishing essential supplies. As a result, refineries are forced to lower prices and promote sales due to inventory pressure at various stages of the supply chain. Additionally, demand for MTBE is also influenced by bearish factors.

Supply side: There are plans for the start-up of Yuxin's isomerization unit in Huizhou, while Yuhuang in Shandong may have shutdown plans for its dehydrogenation unit, leading to sporadic fluctuations in resource supply. In the short term, the MTBE supply in China is influenced by positive factors.

As of August 8, statistics on MTBE factory prices from selected production enterprises:

As of the close on August 7, Asian MTBE market prices closed down by $4.97 per ton compared to the previous trading day, settling at $654.41-$656.41 per ton FOB Singapore. European MTBE market prices closed down by $13 per ton compared to the previous trading day, settling at $794.49-$794.99 per ton FOB ARA. U.S. MTBE market prices closed down by $4.57 per ton compared to the previous trading day, settling at $707.08-$707.44 per ton FOB Gulf (equivalent to 199.65-199.75 cents per gallon).

Market Forecast: With high production costs and some major manufacturers still delivering exports, the overall supply remains limited. Therefore, the market is likely to remain stable with strong support. An MTBE analyst believes that China's MTBE market will mainly maintain a strong and stable trend.