SunSirs: China MTBE Market Fluctuated narrowly

https://www.chemnet.com   Aug 05,2024 SunSirs

The domestic MTBE market fluctuated narrowly. From July 29th to August 2nd, MTBE prices rose from 6,737 RMB/ton to 6,750 RMB/ton, with a price increase of 0.19% during the period, a month on month increase of 2.58%, and a year-on-year decrease of 11.04%. Due to the shutdown and maintenance of multiple facilities, resource supply has been reduced, and many manufacturers have increased their prices for shipments. However, the demand for gasoline terminals has remained flat, and the enthusiasm of industry players to buy has been lackluster. The market is mainly in a state of stagnation and consolidation.

On the cost side, in terms of crude oil: International oil prices have fallen, mainly due to negative factors such as the positive signal released by the Israeli Palestinian ceasefire negotiations and the continued fermentation of market concerns about demand prospects. However, the assassination of Hamas leaders has narrowed the decline. As of August 1st, the settlement price of the main Brent crude oil futures contract was $79.52 per barrel.

On the demand side, in terms of gasoline terminal demand, the number of inspection and training plants decreased in August, and coupled with the expectation of improved domestic demand, there may be an increase in supply side inventory. However, the low refining profits of refineries provide some support for the prices of refined oil products. In terms of demand, the high temperature in summer and the summer travel of the public still play a certain supporting role in gasoline terminal consumption, and gas station merchants may maintain a small amount of high-frequency procurement and sales rhythm. Short term MTBE demand is influenced by favorable factors.

Supply side: Shengtong Chemical and Shandong Chengtaicun have plans to start construction, and there are expectations of a narrow increase in resource supply. Short term domestic MTBE supply is affected by bearish factors.

As of the close on August 1st, the closing price of the Asian MTBE market has increased by $1/ton compared to the previous trading day, with FOB Singapore closing at $797.99-799.99/ton. The closing price of the European MTBE market decreased by $1/ton compared to the previous trading day, and FOB ARA closed at $995.99-996.49/ton. The closing price of the MTBE market in the United States increased by 4.62 US dollars/ton compared to the previous trading day, and the FOB Gulf offshore price closed at 997.72-998.07 US dollars/ton (281.05-281.15 US cents/gallon).

Currently, some manufacturers in the Northeast and Shandong regions are still exporting to ports, which temporarily alleviates the pressure of domestic oversupply. However, the substantial positive demand is relatively limited. MTBE analysts from SunSirs believe that the domestic MTBE market will consolidate narrowly in the short term.

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

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