SunSirs: China MTBE Market Fluctuates Narrowly

According to the Commodity Market Analysis System of SunSirs, the domestic MTBE market fluctuates within a narrow range. From June 8th to 15th, the price of MTBE dropped from 7,325 RMB/ton to 7,250 RMB/ton, with a price drop of 1.02% during the cycle, a month on month decrease of 4.76%, and a year-on-year decrease of 17.85%. The operating rate of the device is high, the resource supply is still relatively abundant, and the market resistance is significant. The MTBE market price is mainly subject to narrow fluctuations.

On the cost side, in terms of crude oil: Due to the slow global economic recovery, some developed economies may have started to fall into recession, and the global central bank's interest rate hike cycle has not yet stopped, suppressing expectations of energy demand growth, and the price trend of crude oil market has declined. On June 14th, the benchmark price of WTI crude oil for Business Society was 67.12 US dollars per barrel, a decrease of -3.37% compared to the beginning of this month (69.46 US dollars per barrel). The cost side is negative for the domestic Petroleum industry chain market, and the MTBE cost side is negative.

On the demand side, in terms of gasoline, the international crude oil futures prices have fluctuated and fallen, while the refined oil market is weak and declining. Middle and downstream merchants are cautious in purchasing, and the market has a strong wait-and-see atmosphere. The demand side of MTBE is influenced by bearish factors.

As of the close on June 14th, the closing price of the Asian MTBE market has increased by $20.84 per ton compared to the previous trading day, while FOB Singapore closed at $963.82-964.02 per ton. The closing price of the European MTBE market remained unchanged compared to the previous trading day, with FOB ARA closing at $994.49- $994.99 per ton. The closing price of the MTBE market in the United States increased by $4.54 per ton compared to the previous trading day, while the FOB Gulf price closed at $888.95-889.3 per ton (250.41-250.51 cents per gallon).

In the future, most manufacturers will maintain normal operations, with abundant spot supply and relatively weak terminal demand. SunSirs MTBE analysts believe that the domestic MTBE market will be mainly weak in the short term.

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