August 21 news
According to the commodity market analysis system, from August 14 to 21, the price of MTBE in China increased from 6,610 CNY/ton to 7,026 CNY/ton, with a price increase of 6.29% during the period, up 0.38% month-on-month, and up 40.39% year-on-year.
The Chinese MTBE market has been strong, with prices continuously rising. During the week, the stalemate between the US and Iran continued, raising concerns about supply risks, and international crude oil prices fluctuated upward, effectively boosting market sentiment. On the supply side in China, maintenance at Lihuayi's traditional and isomer plants, coupled with some major manufacturers temporarily withholding supplies, further tightened the availability of resources in the market. At the same time, the gasoline market performed strongly, with consecutive days of positive production and sales data, significantly increasing downstream procurement enthusiasm for related gasoline components.
MTBE China production price average trend chart:
Cost Perspective: Regarding crude oil, international oil prices have risen. The primary positive factor is the persistent deadlock between the U.S. and Iran, which has led to a prolonged standoff. There are currently no signs of the Strait of Hormuz reopening in the short term, and ongoing supply-side uncertainties continue to provide support for oil prices.
Demand Side: On the downstream side, in terms of gasoline, rising international crude oil futures prices have boosted market sentiment, driving continued upward momentum in refined oil prices. Refineries are strongly motivated to raise their prices, while intermediate traders are appropriately locking in prices and placing orders. Downstream retailers are largely maintaining high inventory levels and continuing to buy and sell at active pace, resulting in a lively buying and selling atmosphere in the market. On the MTBE demand side, bearish factors are exerting downward pressure.
Supply Side: The Ningxia Baofeng plant has scheduled maintenance, while Shenghong Refining & Chemical and Haiteweiye may resume operations. Overall, resource supply is expected to increase. The MTBE supply side is being weighed down by negative factors.
As of August 21, statistics on MTBE factory prices from selected manufacturers:
| Enterprise | Unit | Price |
|---|---|---|
| Chengtai Chemical | 200,000 tons/year isomerization unit shut down | 7,100 CNY/ton |
| Shida Shenghua | 200,000 tons/year isomerization unit operating steadily, normal shipments | 7,130 CNY/ton |
| Shenchi Chemical | 400,000 tons/year mixed alkane dehydrogenation plant co-producing 350,000 tons of MTBE | / CNY/ton |
| Lihua Yi | Isomerization and isobutane dehydrogenation units operating normally | 7,100 CNY/ton |
| Dongming Petrochemical | 350,000 tons/year mixed alkane dehydrogenation unit operating steadily, producing 1,000 tons per day | 7,100 CNY/ton |
As of the close on August 20, the Asian MTBE market closed at a price that was $8.36 per ton lower than the previous trading day, with FOB Singapore prices ranging from $997.22 to $999.22 per ton. The European MTBE market closed at a price that was $2.75 per ton lower than the previous trading day, with FOB ARA prices ranging from $1,386.74 to $1,387.24 per ton. The U.S. MTBE market closed at a price that was $2.76 per ton higher than the previous trading day, with FOB Gulf offshore prices ranging from $1,115.82 to $1,116.18 per ton (315.06 to 315.16 cents per gallon).
| Region | Country | Closing Price | Change |
|---|---|---|---|
| Asia | FOB Singapore | USD 997.22–999.22 per ton | -USD 8.36 per ton |
| Europe | FOB ARA | USD 1386.74–1387.24 per ton | -USD 2.75 per ton |
| United States | FOB Gulf | USD 1115.82–1116.18 per ton | +USD 2.76 per ton |
Market Forecast: Raw material prices remain at high levels, putting significant cost pressure on the market. As the summer vacation period draws to a close, the frequency of public travel is gradually declining. However, this round of expected increases in wholesale and retail price caps for refined oil products provides positive news for the oil market, suggesting that refined oil prices are likely to stay firm. Refineries continue to show willingness to raise prices. MTBE analysts believe that the MTBE market could see another upward trend.
