MTBE Market Prices Edge Higher Within a Narrow Range

January 16th, news:

According to the commodity market analysis system, from January 12 to 16, the price of MTBE increased from 4,750 CNY/ton to 4,796 CNY/ton, with a price increase of 0.98% during the period, a decrease of 3.10% month-over-month, and a decrease of 18.35% year-over-year. After the previous reduction in MTBE prices, manufacturers' shipments began to improve. Coupled with the continuous rise in international crude oil closing prices and the improvement in gasoline terminal demand, manufacturers actively pushed up their quotes, and the transaction focus of China's MTBE market steadily moved upward.

MTBE China Production Price Average Trend Chart:

Cost Perspective: On the crude oil front, international oil prices have risen significantly. The primary positive factors include escalating geopolitical risks—such as the situation in Iran and the Russia-Ukraine conflict—along with lingering short-term concerns about supply. The unstable geopolitical environment continues to provide support for oil prices. As of January 15, the settlement price for the March Brent crude oil futures contract was reported at $63.76 per barrel.

Demand Side: On the downstream gasoline front, the rebound in international crude oil futures has boosted the oil market, leading to a halt in the decline and subsequent rebound in refined oil prices. Amid rising buying sentiment among mid- and downstream traders, procurement activities have increased, thereby providing refineries with the impetus to raise prices accordingly. Overall, the market’s buying and selling atmosphere remains fairly positive. The demand side for MTBE is also influenced by relatively favorable factors.

Supply side: There are plans for the Dongfang Hongye facility to start operations, which is expected to increase resource supply. The MTBE supply side is affected by favorable factors.

As of January 16, statistics on MTBE factory prices from selected production enterprises:

As of the close on January 15, the Asian MTBE market closed at a price that was $4.1 per ton lower than the previous trading day, with FOB Singapore prices ranging from $633.12 to $635.12 per ton. In the European MTBE market, closing prices were $19.25 per ton lower than the previous trading day, with FOB ARA prices ranging from $737.49 to $737.99 per ton. In the U.S. MTBE market, closing prices were $16.5 per ton lower than the previous trading day, with FOB Gulf offshore prices ranging from $631.75 to $632.10 per ton (equivalent to 178.38 to 178.48 cents per gallon).

Market Forecast: Raw material prices remain at high levels, and cost pressures persist. Terminal demand for gasoline is weakening. MTBE analysts believe that the Chinese MTBE market will mainly experience volatile and consolidating trends.