SunSirs: China MTBE Market with Narrow Fluctuations

https://www.chemnet.com   Jul 22,2024 SunSirs

The domestic MTBE market fluctuated narrowly. From July 15th to 19th, the MTBE price first fell from 6,750 RMB/ton and then rose to 6,737 RMB/ton, with a price drop of 0.19% during the period, a month on month increase of 3.06%, and a year-on-year decrease of 7.86%. Some manufacturers such as Dongying Shenchi and Shouguang Luqing have started to resume exports, increasing the circulation of resources. However, due to the shutdown of some facilities, local sources of goods have slightly tightened, resulting in a relatively slow decline in the market. Supported by the sharp rise in international crude oil prices at the end of the week, the market has slightly risen.

In terms of cost and crude oil, international oil prices have fluctuated, mainly due to the positive support brought by the traditional peak consumption season in the United States and the increasing expectation of the Federal Reserve's September interest rate cut. However, the market still has concerns about the economic and demand prospects, and negative sentiment also exists. As of July 18th, the settlement price of the main Brent crude oil futures contract was $85.11 per barrel.

On the demand side, international crude oil futures first suppressed and then rose, while the refined oil market fluctuated narrowly. Among them, gasoline performance was relatively strong, and most refineries in the region mainly shipped in large quantities. In addition to consuming inventory, middle and downstream merchants purchased according to demand, and the market buying and selling atmosphere was still acceptable. The impact of short-term MTBE demand is mixed.

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.

As of the close on July 18th, the closing price of the Asian MTBE market has increased by $11.5/ton compared to the previous trading day, with FOB Singapore closing at $832.49-834.49/ton. The closing price of the European MTBE market increased by $3/ton compared to the previous trading day, and FOB ARA closed at $1,013.49-1,013.99/ton. The closing price of the MTBE market in the United States increased by $5.37/ton compared to the previous trading day, and the FOB Gulf offshore price closed at $1,013.84-1,014.19/ton (285.59-285.69 cents/gallon).

Currently, most large manufacturers are maintaining normal exports, with relatively abundant resource supply. In terms of gasoline demand, although the operating level of local refining facilities has increased, it is still at a low level. Operators will mainly purchase MTBE on demand. The MTBE analyst from SunSirs believes that the domestic MTBE market has limited volatility in the short term.

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

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