MTBE Market Prices Show Slight Fluctuations

January 23rd, News

According to the commodity market analysis system, from January 19 to 23, the price of MTBE rose from 4776 CNY/ton to 4806 CNY/ton, with a price increase of 0.63% during the period, a month-on-month decrease of 2.00%, and a year-on-year decrease of 18.18%. The Chinese MTBE market continued to maintain a narrow consolidation pattern. At the beginning of the week, the trading atmosphere in the market was slightly weak, and prices were under pressure and declined slightly. As prices adjusted to relatively low levels, the purchasing enthusiasm of downstream buyers gradually increased, and with signs of improvement in gasoline end consumption, MTBE manufacturers took the opportunity to slightly raise their quotes, boosting market sentiment.

MTBE China Production Price Average Trend Chart:

Cost Perspective: On the crude oil front, international oil prices have risen. The main positive factors include: partial oilfield production in Kazakhstan has yet to resume, Venezuela’s crude oil export volume has fallen short of expectations, and ongoing geopolitical instability continues to provide support for oil prices. As of January 22, the settlement price for the April Brent crude oil futures contract was reported at $63.34 per barrel.

Demand Side: On the downstream gasoline front, following a significant drop in temperatures in northern regions, private car usage has increased, and gas stations at the retail end are experiencing smooth sales. The demand side for MTBE is being supported by relatively favorable factors.

Supply side: There are no new start-ups or shutdowns of facilities, and resource supply is expected to remain stable. The impact on MTBE supply is mixed.

As of January 23, statistics on MTBE factory prices from selected production enterprises:

As of the close on January 22, the Asian MTBE market closed at a price that was up $3.84 per ton from the previous trading day, with FOB Singapore prices ranging from $640.86 to $642.86 per ton. In the European MTBE market, prices closed down $6.75 per ton from the previous trading day, with FOB ARA prices ranging from $768.74 to $769.24 per ton. In the U.S. MTBE market, prices closed down $7.16 per ton from the previous trading day, with FOB Gulf offshore prices ranging from $671.91 to $672.27 per ton (189.72 to 189.82 cents per gallon).

Market Outlook: Raw material prices remain at high levels, and cost pressures persist. As international prices rebound, newly signed orders continue to be relatively active, providing some support to Chinese industry players’ sentiment. MTBE analysts believe that the MTBE market is likely to maintain its current range-bound trading pattern, and it will still be necessary to closely monitor crude oil trends and the development of demand.