SunSirs: China MTBE Market was Sorting

https://www.chemnet.com   Jul 29,2024 SunSirs

The domestic MTBE market has been consolidating. From July 22nd to 26th, MTBE prices first rose from 6,712 RMB/ton and then fell to 6,737 RMB/ton, with a price increase of 0.37% during the period, a month on month increase of 3.26%, and a year-on-year decrease of 11.35%. The interweaving of multiple factors results in frequent fluctuations in the MTBE market. At the beginning of the week, the market trend was weak, with price fluctuations and downward adjustments being the main trend. Starting from Tuesday, prices have slightly increased, mainly due to the increased purchasing enthusiasm of terminal operators, as well as the shutdown of some heterogeneous devices. Under the reduction of resource supply, MTBE manufacturers have a strong intention to push up prices. However, after the price rose to a high level, the cautious purchasing mentality of operators increased, and the market slightly adjusted and consolidated.

In terms of crude oil, international oil prices have fallen, mainly due to negative factors such as the resurgence of ceasefire negotiations between Palestine and Israel, easing of geopolitical tensions, and continued market concerns about demand prospects. As of July 25th, the settlement price of the main Brent crude oil futures contract was $82.37 per barrel.

In terms of gasoline terminal demand, tourism travel and air conditioning fuel continue to increase, with relatively good gasoline demand and strong bottom support. Short term MTBE demand is influenced by favorable factors.

Supply side: Huayi Chemical and Dongfang Hongye plan maintenance, while Dongming Qianhai plans to start construction. Maintenance and construction coexist, and it is expected that resource supply may be slightly reduced. Overall, the operating rate of MTBE units is still relatively low, which provides some support for the market. The short-term domestic MTBE supply is affected by favorable factors.

As of the close on July 25th, the closing price of the Asian MTBE market has increased by $5.5/ton compared to the previous trading day, with FOB Singapore closing at $800.99-802.99/ton. The closing price of the European MTBE market decreased by $23.75/ton compared to the previous trading day, and FOB ARA closed at $940.49-940.99/ton. The closing price of the MTBE market in the United States increased by $5.89/ton compared to the previous trading day, and the FOB Gulf offshore price closed at $973.15-973.51/ton (274.13-274.23 cents/gallon).

Currently, there are favorable factors in both supply and downstream demand. MTBE analysts from SunSirs believe that the domestic MTBE market will have a positive trend in the short term.

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

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