According to the Commodity Market Analysis System of SunSirs, the domestic MTBE market fluctuated in August. From August 1st to 29th, MTBE prices fell from 5.37 RMB/ton to 4,985 RMB/ton, with a price drop of 1.04% during the period, a maximum amplitude of 2.64%, and a year-on-year price drop of 19.43%.

In early August, the domestic MTBE market saw a narrow consolidation, with some manufacturers exporting to ports and some manufacturers not releasing much, providing some support to the market. However, the demand for gasoline terminals was weak, and some inspections were strict. The enthusiasm of industry players to purchase related gasoline components was average, and MTBE manufacturers' shipments were cold. With the continuous rise of crude oil, MTBE prices have slightly rebounded under this support, but the magnitude is relatively limited.

In early August, the domestic MTBE market remained strong, with prices experiencing a slight increase. Large manufacturers such as Lihua Yi export to the port and currently have no exports, which provides significant support to the market. At the same time, some large manufacturers mainly deliver for export, resulting in a decrease in export volume. Under this support, MTBE manufacturers maintain high prices for shipments.

In mid August, after reaching a temporary high, MTBE prices cooled down the market trading atmosphere, and some industry players' purchasing intentions weakened, leading to a slight drop in prices. But as the market adjustment narrowed, prices quickly stabilized again.

In late August, the domestic MTBE market fluctuated weakly. Local large manufacturers have ended their export port consolidation, resulting in an increase in MTBE external sales and gradually abundant resource supply. However, the demand for gasoline terminals is not performing well due to negative factors such as weak crude oil. Operators are purchasing relevant gasoline components on demand, and MTBE manufacturers are offering discounts to promote sales.

On the cost side, international crude oil prices have weakened since August, with monthly average prices falling for two consecutive months. Brent continues to operate below the $70 mark, with overall performance slightly sluggish. The fluctuation range of Brent prices in August was between $65.63-69.67 per barrel. The main negative factors for the decline in oil prices in August were the firm stance of OPEC+ on increasing production, which created a bearish atmosphere, and the United States pushing for Russia Ukraine peace talks, resulting in a significant easing of the geopolitical situation.

On the demand side, in terms of downstream gasoline, as the summer season approaches its end, the demand for gasoline terminals is gradually weakening, and businesses are purchasing mostly for essential needs. The market trading atmosphere is becoming more cautious. The MTBE demand side is affected by bearish factors.

On the supply side, at the beginning of the month, Lihua Yi manufacturers gathered at the port for non sale, and Dongming Qianhai equipment had a shutdown plan. In the middle of the month, there are plans to start operating the Yuxin heterogeneous unit in Huizhou, and there may be plans to shut down the Yuhuang dehydrogenation unit in Shandong. Heilongjiang Xinrui Chemical has a shutdown plan, which will reduce resource supply. The overall domestic MTBE supply is affected by bearish factors.

As of the close on August 28th, the closing price of the Asian MTBE market has increased by $1.57/ton compared to the previous trading day, with FOB Singapore closing at $657.79-659.79/ton. The closing price of the European MTBE market has increased by $12/ton compared to the previous trading day, with FOB ARA closing at $865.99-866.49/ton. The closing price of the MTBE market in the United States increased by $7.79/ton compared to the previous trading day, and the FOB Gulf offshore price closed at $787.90-788.26/ton (222.47-222.57 cents/gallon)

Currently, raw material prices are operating at a high level, and cost pressure remains significant. International oil prices have room for decline, and weak fundamental demand is suppressing the refined oil market. MTBE analysts from SunSirs believe that the domestic MTBE market may continue to decline.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.