SunSirs: China MTBE Market Rises narrowly

https://www.chemnet.com   Jul 15,2024 SunSirs

The domestic MTBE market fluctuated slightly. From July 8th to 12th, MTBE prices rose from 6,600 RMB/ton to 6,825 RMB/ton, with a price increase of 3.41% during the cycle, a month on month increase of 5.81%, and a year-on-year decrease of 6.19%. The overall trend of the domestic MTBE market is strong, with prices showing an upward trend. Some companies have temporarily stopped production, and there are few exports to ports. Some manufacturers' products are temporarily unqualified, resulting in a decrease in exports and a significant reduction in the amount of circulating resources in the market. Therefore, although the trend of crude oil is weak and the gasoline market is relatively flat, the domestic MTBE market still rises against the trend, and the overall trend is strong.

On the cost side, in terms of crude oil: The rise in international oil prices is mainly due to the increased instability in the Middle East caused by the tense Israel Lebanon relationship, and the unexpected decrease in US commercial crude oil inventories. As of July 4th, Brent crude oil has slightly increased, with the main contract settlement price at $87.43 per barrel.

On the demand side, international crude oil futures fluctuated downward, gasoline prices remained relatively strong, and diesel prices remained weak. Refineries mainly focused on increasing shipment volume, but insufficient terminal demand suppressed mid to downstream market purchases, resulting in a flat trading atmosphere in the market. Short term MTBE demand is influenced by favorable factors.

Supply side: Ningxia Hengyou plant starts construction, Dongming Qianhai plant temporarily shuts down, Sanjiang Petrochemical heterogeneous plant undergoes maintenance, Qingzhou Tian'an plant shuts down, plant operating rate declines, and resource supply decreases. The short-term domestic MTBE supply is affected by favorable factors.

Supply side: Ningxia Hengyou plant starts construction, Dongming Qianhai plant temporarily shuts down, Sanjiang Petrochemical heterogeneous plant undergoes maintenance, Qingzhou Tian'an plant shuts down, plant operating rate declines, and resource supply decreases. The short-term domestic MTBE supply is affected by favorable factors.

In the future forecast, there is still positive support from the supply side. If there are positive news such as crude oil, there may still be a possibility of tentative price increases in some areas. The MTBE analyst from SunSirs believes that in the short term, the domestic MTBE market will mainly focus on consolidation and observation.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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