SunSirs: China MTBE Market Fluctuates and Rises in July

https://www.chemnet.com   Jul 31,2024 SunSirs

According to the Commodity Market Analysis System of SunSirs, the domestic MTBE market is fluctuating upwards. From July 1st to 30th, MTBE prices rose from 6,525 RMB/ton to 6,737 RMB/ton, with a price increase of 3.26% during the period and a year-on-year price decrease of 9.72%.

In the first half of the month, the international crude oil trend was good, and under this positive support, manufacturers had a strong intention to raise prices. At the same time, terminal operators had a certain degree of purchasing enthusiasm, and there was still some positive support for basic needs. MTBE manufacturers maintained high prices for shipments. At the same time, due to the high MTBE prices in Asia and active export order negotiations, it formed a positive support for the mentality of operators, and the MTBE market was mainly volatile in the short term.

In mid month, the overall trend of the domestic MTBE market remained strong, with prices showing an upward trend. Some companies temporarily shut down their facilities, and there were few exports to ports. Some manufacturers' products were temporarily unqualified, resulting in a decrease in exports and a significant reduction in market circulation resources. Therefore, although the crude oil trend was weak and the gasoline market was relatively flat, the domestic MTBE market still rose against the trend, and the overall trend remained strong.

At the end of the month, some manufacturers such as Dongying Shenchi and Shouguang Luqing began to resume exports, resulting in an increase in resource circulation. However, due to the shutdown of some facilities, local sources of goods slightly tightened, causing a relatively slow decline in the market. At the end of the week, the international crude oil market closed sharply, supporting a slight upward trend in the market.

As the end of the month approaches, multiple factors are intertwined, and the MTBE market experiences frequent fluctuations. The main reason is that terminal operators have increased their enthusiasm for purchasing, while some heterogeneous devices are still shut down. Under the reduction of resource supply, MTBE manufacturers have a strong intention to push up prices. However, after the price rises to a high level, the cautious attitude of operators in purchasing has increased, and the market has slightly rebounded and consolidated.

On the cost side, international crude oil prices fluctuated narrowly in July, rising first and then falling. Although the situation in the Middle East remained tense, concerns about supply eased and market participants continued to worry about weakened demand. International oil prices fell to their lowest level since early June, and Brent crude oil futures fell below $80 per barrel.

On the demand side, in terms of terminal demand for gasoline, 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.

On the supply side, Huayi Chemical and Dongfang Hongye plan maintenance, while Dongming Qianhai plans to start construction. Maintenance and construction coexist, and resource supply will 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.

In terms of external trading, on July 29th, the closing price of the Asian MTBE market decreased by $2/ton compared to the previous trading day, and FOB Singapore closed at $809.99-811.99/ton. The closing price of the European MTBE market increased by $9.25/ton compared to the previous trading day, and FOB ARA closed at $968.74-969.24/ton. The closing price of the MTBE market in the United States decreased by $15.87/ton compared to the previous trading day, and the FOB Gulf offshore price closed at $958.24-958.6/ton (269.93-270.03 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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