According to the Commodity Market Analysis System of SunSirs, the domestic MTBE market in July was consolidating at a low level. From July 1st to 31st, MTBE prices fell from 5,112 RMB/ton to 5,050 RMB/ton, with a price drop of 1.22% during the period, a maximum amplitude of 4.57%, and a year-on-year price drop of 25.05%.

At the beginning of the month, the domestic MTBE market experienced narrow fluctuations, followed by consolidation with changes in the crude oil market.

In the first half of the month, the domestic MTBE market was weakly consolidating, with prices operating in a low range. The market experienced a significant decline in the early part of the week, mainly due to the increase in resource supply and the weak trend of crude oil, with manufacturers offering discounts for shipments. At present, the operating profit of the equipment is relatively high, the resource supply is abundant, and the substantial positive demand is limited. However, the domestic MTBE market maintains a weak operating trend.

In mid month, the domestic MTBE market fell to a certain low and then slightly rose, boosted by the signing of more export orders. Some manufacturers prepared for port consolidation in advance, resulting in a decrease in external sales. The MTBE market was slightly boosted by the phased replenishment of downstream operators, and manufacturers intend to increase prices and volume.

At the end of the month, there were sporadic adjustments in the domestic MTBE market, with some manufacturers exporting to ports, resulting in a significant decrease in export volume. Downstream businesses have a certain demand for purchasing, and the overall transaction atmosphere is still acceptable.

In terms of cost, international crude oil prices showed a slight decline in July, and the average price decreased compared to June. In early October, the United States extended the deadline for trade negotiations, and market concerns about US tariff negotiations weakened. And the traditional peak consumption season in the United States is still ongoing, supporting the rise in international oil prices. In the middle of the month, the US sanctions plan against Russia will not be implemented in the short term, coupled with the ongoing OPEC+production increase and the decline in international oil prices. In the latter half of the year, the United States and the European Union reached a new trade agreement, significantly reducing market concerns about tariff issues. And the possibility of the United States imposing new sanctions on Russia could trigger potential supply risks, leading to an increase in international oil prices.

On the demand side, in terms of downstream gasoline, international oil prices may decline, while a new round of retail price limits for refined oil products is hovering on the brink of being lowered. It is difficult to find substantial positive news to boost the refined oil market. Intermediate traders place rational orders, and downstream users maintain median inventory for procurement and sales. Therefore, refinery shipments and volume growth remain the focus of operations. The MTBE demand side is affected by bearish factors.

On the supply side, at the beginning of the month, resource supply further increased after the construction of Huayi Chemical Plant. Maoming Shihua has plans to start construction, while also observing the production time of some new plants such as Kaiyi New Materials. In the middle of the month, Anqing Taifa plant started construction, and Kaiyi New Materials has the possibility of shipment, further increasing resource supply. The Dongming Qianhai facility is scheduled to shut down, resulting in a reduction in resource supply. The overall domestic MTBE supply is affected by bearish factors.

As of the close on July 30th, the closing price of the Asian MTBE market has increased by $16.68/ton compared to the previous trading day, with FOB Singapore closing at $677.25-679.25/ton. The closing price of the European MTBE market has increased by $1/ton compared to the previous trading day, with FOB ARA closing at $872.49-872.99/ton. The closing price of the MTBE market in the United States increased by $19.02 per ton compared to the previous trading day, and the FOB Gulf offshore price closed at $779.90-780.25 per ton (220.21-220.31 cents per gallon).

Currently, raw material prices are operating at a high level, and cost support is relatively abundant. The MTBE analyst from SunSirs believes that the domestic MTBE market may remain strong.

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