June 22 news
According to the commodity market analysis system, from June 15 to 22, the price of MTBE fell from 5820 CNY/ton to 5427 CNY/ton, with a price decrease of 6.74% within the period, a month-on-month decrease of 15.53%, and a year-on-year increase of 4.88%. The Chinese MTBE market experienced a fluctuating decline. During the week, the US and Iran are expected to formally sign a peace agreement soon, and the Strait of Hormuz will also gradually open, leading to a significant drop in international crude oil prices at the close. The gasoline market also declined synchronously. With sluggish export negotiations, the sales pressure for MTBE in China increased, making the downward trend more evident. Manufacturers offered discounts to sell, but it was still difficult to effectively stimulate buyers' enthusiasm, and transactions remained weak.
MTBE China production price average trend chart:
Cost Perspective: Regarding crude oil, international oil prices have fallen sharply. The primary negative factor is that the U.S. and Iran have remotely signed a memorandum of understanding and are about to enter the second phase of negotiations. News confirms that the U.S. has lifted its maritime control over Iran and eased sanctions on its oil exports, continuously easing market concerns about crude oil supply. As of June 19, the settlement price for the September Brent crude oil futures contract was reported at $80.05 per barrel.
Demand Side: On the downstream side, the frequency of public travel has declined. Meanwhile, international oil prices are expected to continue falling, and the retail price caps for refined oil products in the new round are also anticipated to drop significantly, leading to a weak performance in the gasoline market. The demand side for MTBE is being weighed down by bearish factors.
Supply side: The Maoming Shihua facility has started operations, and the production at Dechen Energy's facility has been affected after its start-up, leading to an increase in the facility utilization rate. The supply side of MTBE is influenced by bearish factors.
As of June 22, statistics on MTBE factory prices from selected manufacturers:
| Company | Unit | Price |
|---|---|---|
| Chengtai Chemical | 200,000 tons/year isomerization unit shut down | 5,450 CNY/ton |
| Shida Shenghua | 200,000 tons/year isomerization unit operating steadily, normal shipments | 5,430 CNY/ton |
| Shenchi Chemical | 400,000 tons/year mixed alkane dehydrogenation plant co-producing 350,000 tons of MTBE | No quote available for now |
| Lihua Yi | Isomerization and isobutane dehydrogenation units operating normally | 5,450 CNY/ton |
| Dongming Petrochemical | 350,000 tons/year mixed alkane dehydrogenation unit operating steadily, producing 1,000 tons per day | 5,380 CNY/ton |
As of the close on June 19, the Asian MTBE market closed at a price that was up $21.33 per ton from the previous trading day, with FOB Singapore prices ranging from $761.55 to $763.55 per ton. The European MTBE market closed at a price that was up $37.5 per ton from the previous trading day, with FOB ARA prices ranging from $973.99 to $974.49 per ton. Due to the Juneteenth holiday, the U.S. MTBE market was closed.
| Region | Country | Closing Price | Change |
|---|---|---|---|
| Asia | FOB Singapore | $761.55–$763.55 per ton | $21.33 per ton |
| Europe | FOB ARA | $973.99–$974.49 per ton | $37.5 per ton |
| United States | FOB Gulf | / per ton | / per ton |
Market Forecast: Although raw material prices have slightly declined, they remain at high levels, and cost pressures persist. Currently, manufacturers still face inventory pressure and will focus primarily on actively boosting sales volume. MTBE analysts believe that the MTBE market is likely to remain in a period of consolidation.
