MTBE Market Rises With 'Vigor'

From April 15th to 22nd, the domestic MTBE market increased significantly. The price of MTBE remained at RMB 7,137/ton at the beginning of the week, and at RMB 7,525/ton at the weekend. During the week, the price increased by 5.43%, while the price decreased by 6.67% month-on-month and increased by 24.04% year-on-year.

This week, the domestic MTBE market price has stepped up again, with an increase of around 100-300 CNY/ton. The demand for gasoline in the north is gradually recovering, coupled with the continuous upward trend in gasoline prices this week, the demand for raw materials has increased accordingly. There are still 5-6 enterprises in the Shandong area that are parked, and some enterprises in the north have increased their export volume, resulting in a tightening of the overall supply in the north. The price of raw material carbon 4 rose, which further boosted the MTBE market.

In terms of methanol, the cost of methanol production may vary or be limited. From a fundamental point of view, the supply side is relatively abundant, and the demand side has not changed much. Downstream enterprises may stock up in an appropriate amount before May 1st, and the methanol market may rise in a narrow range next week.

In terms of external disks, as of the close on April 21, the closing price of the Asian MTBE market was increased by US$14.14/ton compared with the previous trading day, and FOB Singapore closed at US$1139.11-1141.11/ton. The closing price of the European MTBE market was raised by $19.50/ton from the previous trading day, and the FOB ARA closed at $1199.99-1200.49/ton. The closing price of the US MTBE market was raised by $19.10/ton from the previous trading day, and the FOB Gulf price closed at $1306.67-1307.03/ton (368.08-368.18 cents/gallon).

In terms of enterprises, Shandong Chengtai New Materials' 200,000-ton/year isomerization plant was shut down on March 23. The current sales and inventory are mainly, and it is planned to resume operation after the May Day. The MTBE quotation was raised by RMB 100/ton to RMB 7,500/ton. Shi Dashenghua's MTBE price was raised by 150 CNY/ton, and the quotation was 7,500 CNY/ton. The 200,000-ton/year isomerization unit was in normal operation. Shandong Shenchi Chemical Co., Ltd.'s 400,000-ton/year mixed-alkane dehydrogenation co-production 350,000-ton MTBE unit was shut down for maintenance on December 27, and the specific start-up time is to be determined. The MTBE quotation of Lihua Yilijin Petrochemical was raised by RMB 50/ton to RMB 7,500/ton for the second time. The 125,000-ton/year isomerization MTBE unit is operating normally, and the 200,000-ton/year isobutane dehydrogenation unit is operating normally. Dongming Qianhai Chemical's 350,000-ton/year mixed alkane dehydrogenation unit started normally, and the MTBE quotation was raised by 200 CNY/ton to 7,600 CNY/ton.

With the increase in exports, the domestic supply has decreased, and there are still 5-6 enterprises in Shandong that have not started construction, and the overall market supply is limited. On the demand side, as the May 1st holiday is approaching, the market demand is still there, and both supply and demand are favorable. The MTBE analyst of the business agency believes that in the short term, the domestic MTBE market will mainly fluctuate within a narrow range.