July 10th News
According to the commodity market analysis system, from July 3 to July 10, the price of MTBE increased from 5,100 CNY/ton to 5,412 CNY/ton, with a price increase of 6.13% within the period, a decrease of 10.17% month-over-month, and an increase of 8.52% year-over-year. The Chinese MTBE market has shown a fluctuating upward trend. International crude oil prices have been on the rise, and the Chinese gasoline market has performed well, with production and sales continuing to be robust. Additionally, some MTBE manufacturers are undergoing maintenance, leading to a tightening of resource supply. MTBE exporters have also shown high enthusiasm for negotiations. Under the support of multiple positive factors, the Chinese MTBE market is actively exploring higher prices.
MTBE China Production Price Average Trend Chart:
Cost Perspective: On the crude oil front, international oil prices have risen. The primary positive factor is that the U.S. has announced the cessation of the ceasefire agreement, prompting market concerns that the Strait of Hormuz could once again be shut down, thereby rekindling worries about supply risks. As of July 9, the settlement price for the September Brent crude oil futures contract was reported at $76.30 per barrel.
Demand Side: On the downstream side, the rebound in crude oil prices has boosted industry sentiment, intensifying bullish expectations in the oil market. Intermediaries are moderately locking in prices, while gas station operators may accelerate their purchasing pace. The demand for MTBE is being supported by favorable factors.
Supply side: China's Guguo New Materials may start operations, and Zhenhua New Materials' operating load might increase. However, the continued shutdown of facilities at Dechen Energy, Huayi Chemical, Shandong Chengtai, and Huizhou Yuxin will continue to impact next week's production, potentially leading to a slight reduction in resource supply. MTBE supply is expected to be positively affected.
As of July 10, statistics on MTBE factory prices from selected manufacturers:
| Enterprise | Unit | Price |
|---|---|---|
| Chengtai Chemical | 200,000 tons/year isomerization unit shut down | /CNY/ton |
| Shida Shenghua | 200,000 tons/year isomerization unit operating steadily, normal shipments | 5,400 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 | 5,400 CNY/ton |
| Dongming Petrochemical | 350,000 tons/year mixed alkane dehydrogenation unit operating steadily, producing 1,000 tons per day | 5,500 CNY/ton |
As of the close on July 9, the Asian MTBE market closed at a price $0.57 per ton lower than the previous trading day, with FOB Singapore prices ranging from $791.42 to $793.42 per ton. The European MTBE market closed $18.5 per ton lower than the previous trading day, with FOB ARA prices ranging from $1,166.99 to $1,167.49 per ton. In the U.S. MTBE market, prices closed $50.54 per ton lower than the previous trading day, with FOB Gulf offshore prices ranging from $1,095.32 to $1,095.67 per ton (309.27 to 309.37 cents per gallon).
| Region | Country | Closing Price | Change |
|---|---|---|---|
| Asia | FOB Singapore | USD 791.42–793.42 per ton | -USD 0.57 per ton |
| Europe | FOB ARA | USD 1166.99–1167.49 per ton | -USD 18.5 per ton |
| U.S. | FOB Gulf | USD 1095.32–1095.67 per ton | -USD 50.54 per ton |
Market Forecast: Raw material prices remain high, particularly the prices of isobutane and high-olefin C4 streams, putting continued pressure on manufacturers' production costs. Currently, export negotiations are quite active, and manufacturers remain inclined to secure export orders. The strong trend in the international market provides support for the market. MTBE analysts believe that the MTBE market is likely to rebound again.
