The domestic MTBE market saw a narrow decline from May 17th to 24th, The price of MTBE has dropped from 6,862 RMB/ton to 6,737 RMB/ton, with a price drop of 1.82% during the cycle, a month on month decrease of 8.95%, and a year-on-year decrease of 12.50%. The domestic MTBE market continues to operate weakly, with a slower decline compared to the previous period. Due to the sustained weak demand for gasoline, it is difficult for businesses to significantly improve their enthusiasm for purchasing gasoline raw materials, Under the high operating rate of MTBE equipment, the supply of resources continues to be excessive, and under the imbalance of supply and demand, the market continues to operate weakly.
On the cost side, in terms of crude oil: International oil prices have overall declined, with the main bearish factors being the delayed expectation of the Federal Reserve's interest rate cut, ongoing market concerns about the economic and demand outlook, and an increase in US commercial crude oil inventories. As of May 23, the settlement price of Brent crude oil futures main contract was $81.36 per barrel, a decrease of $0.54 or 0.7%.
On the demand side, in terms of gasoline, there is a lack of positive news to stimulate sales. The overall shipment situation of retail gas stations is average, and transactions are mainly small orders. The demand for gasoline is average, and the enthusiasm of operators for purchasing gasoline raw materials has decreased. Short term MTBE demand is influenced by bearish factors.
Supply side: Units such as Dongying Qifa, Minghao Chemical, Binzhou Jingbo, and Maoming Shihua are in shutdown, while Qixiang Tengda's mixed alkane dehydrogenation unit is undergoing maintenance. Other units are operating normally without significant fluctuations. In terms of new equipment, Henan's Haier Xixin 150,000 ton Easy Buy equipment is planned to be put into operation in June. Short term domestic MTBE supply is affected by bearish factors.
As of the close on May 23rd, the closing price of the Asian MTBE market has decreased by $11.5/ton compared to the previous trading day, FOB Singapore closed at $864.99-866.99 /ton. The closing price of the European MTBE market has decreased by $15.75 per ton compared to the previous trading day, FOB ARA closed at $956.74-957.24 /ton. The closing price of the US MTBE market has increased by $13.88 /ton compared to the previous trading day, The FOB Gulf price closed at $968.04-968.40 /ton (272.69-272.79 US cents per gallon).
According to future market forecasts, most manufacturers are maintaining normal operations and the supply of spot goods is still relatively high. The demand for gasoline lacks positive incentives, and retail gas stations have average shipments, resulting in poor enthusiasm for purchasing related gasoline raw materials. SunSirs MTBE analysts believe that the domestic MTBE market may continue to be weak in the short term.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.