MTBE Market Prices Rise Significantly in China

March 6th, according to the news

According to the commodity market analysis system, from March 2 to 6, the price of MTBE increased from 5,383 CNY/ton to 5,733 CNY/ton, with a price increase of 6.50% during the period, up 16.93% month-over-month, and down 2.41% year-over-year. Due to strong support from the cost side, the Chinese gasoline market generally has concerns about a significant increase in future production costs. Driven by the expectation of rising prices, major refineries and local refiners in various regions have actively pushed up gasoline quotes, leading to a significant upward trend in the market. Against this backdrop, the MTBE market has also received a notable boost, with a relatively substantial overall price increase.

MTBE China Production Price Average Trend Chart:

Cost Perspective: On the crude oil front, international oil prices have risen sharply, primarily driven by the U.S. and Israeli attacks on Iran and the ensuing geopolitical turmoil in the Middle East. In response, Iran has taken control of the Strait of Hormuz, putting approximately 20% of global seaborne crude oil shipments at risk of disruption. Concerns about crude oil supply have surged rapidly, pushing oil prices higher. As of March 5, the settlement price for the May Brent crude oil futures contract stood at $85.41 per barrel.

Demand Side: On the downstream gasoline front, the sharp rise in international oil prices has boosted the oil market, prompting refineries to take advantage of the situation and push prices to higher levels. However, midstream and downstream traders have largely resisted the rapid price hikes, and at this stage, terminal demand remains insufficient. After an initial round of restocking triggered by the early price surge, inventories across society are still accumulating and need to be absorbed. As we approach the weekend, the buying and selling atmosphere in the oil market has cooled down, with transactions mostly consisting of small orders. The demand side for MTBE continues to be influenced by relatively favorable factors.

Supply side: There are plans to start up the Helisi facility in Henan, which is expected to increase resource supply. The MTBE supply side is affected by negative factors.

As of March 6, statistics on MTBE factory prices from selected manufacturers:

As of the close on March 5, the Asian MTBE market closed at a price that was up $53.22 per ton from the previous trading day, with FOB Singapore prices ranging from $897.63 to $899.63 per ton. In the European MTBE market, prices closed $48 per ton higher than the previous trading day, with FOB ARA prices ranging from $920.99 to $921.49 per ton. In the U.S. MTBE market, prices closed $64.81 per ton higher than the previous trading day, with FOB Gulf offshore prices ranging from $891.74 to $892.10 per ton (251.79 to 251.89 cents per gallon).

Future Market Prediction With high raw material prices, there is ample cost support. MTBE analysts believe that the MTBE market will remain at a high level with some adjustments.