August 28 news
According to the commodity market analysis system, from August 21 to 28, the price of MTBE increased from 7,026 CNY/ton to 7,260 CNY/ton, with a price increase of 3.33% during the period, up 5.61% month-over-month, and up 45.14% year-over-year.
The focus of China's MTBE market continues to rise. After international crude oil prices surged to a high and then fell back, the gasoline market also showed a trend of being high at the beginning and low later. In the first half of the week, gasoline cargo orders were concentrated for delivery, and traders showed high enthusiasm for buying related gasoline components, which facilitated smooth transactions in the MTBE market. Coupled with a limited supply of MTBE spot, manufacturers actively pushed up prices to a certain high level. Even after crude oil prices declined, the MTBE market remained relatively firm.
MTBE China production price average trend chart:
Cost Perspective: Regarding crude oil, international oil prices have fallen. The main negative factors include: mediators continuing to push for the resumption of negotiations between the U.S. and Iran; improved expectations for navigation through the Strait of Hormuz; and a waning of geopolitical and supply concerns.
Demand Side: On the downstream side, while international crude oil futures have been weak and declining, refined oil prices have bucked the trend and risen instead. Refineries, facing low production and low inventory levels, are strongly inclined to hold prices steady. Moreover, as “Golden September” approaches, intermediate traders are increasingly eager to stock up, while downstream retailers maintain high inventory levels and continue their buying and selling activities. Overall, market sales performance remains reasonably good. The demand for MTBE is being weighed down by bearish factors.
Supply side: Shenghong Refining, Haite Weiye, and Huayi Chemical may start operations, which is expected to increase resource supply. The MTBE supply side is influenced by negative factors.
As of August 28, statistics on MTBE factory prices from selected manufacturers:
| Enterprise | Unit | Price |
|---|---|---|
| Chengtai Chemical | 200,000 tons/year isomerization unit shut down | 7,250 CNY/ton |
| Shida Shenghua | 200,000 tons/year isomerization unit operating steadily, normal shipments | 7,300 CNY/ton |
| Shenchi Chemical | 400,000 tons/year mixed alkane dehydrogenation unit co-producing 350,000 tons of MTBE | 7,203 CNY/ton |
| Lihua Yi | Isomerization and isobutane dehydrogenation units operating normally | 7,250 CNY/ton |
| Dongming Petrochemical | 350,000 tons/year mixed alkane dehydrogenation unit operating steadily, producing 1,000 tons per day | 7,300 CNY/ton |
As of the close on August 27, the Asian MTBE market closed at a price that was up $19.65 per ton from the previous trading day, with FOB Singapore prices ranging from $971.8 to $973.8 per ton. In the European MTBE market, closing prices rose by $55.5 per ton from the previous trading day, with FOB ARA prices ranging from $1,473.99 to $1,474.49 per ton. In the U.S. MTBE market, closing prices increased by $10.45 per ton from the previous trading day, with FOB Gulf offshore prices ranging from $1,143.91 to $1,144.26 per ton (322.99 to 323.09 cents per gallon).
| Region | Country | Closing Price | Change |
|---|---|---|---|
| Asia | FOB Singapore | USD 971.8–973.8 per ton | USD 19.65 per ton |
| Europe | FOB ARA | USD 1473.99–1474.49 per ton | USD 55.5 per ton |
| United States | FOB Gulf | USD 1143.91–1144.26 per ton | USD 10.45 per ton |
Market Outlook: Raw material prices remain high, leading to significant cost pressure. As the summer vacation period comes to an close, the frequency of travel by the public is gradually decreasing. However, expectations for an increase in the wholesale and retail price caps for refined oil products are providing positive news for the oil market. The refined oil market is expected to remain strong, and refineries still have intentions to push prices higher. MTBE analysts believe that the MTBE market may see another upward trend.
