SunSirs: China MTBE Market kept Low in September

Affected by the low price of crude oil, gasoline and diesel and the sluggish demand, the domestic MTBE market continued to be low in September. According to the data of business cooperatives, the MTBE price at the beginning of the month was 7,390 RMB/ ton, and the MTBE market price at the end of the month was 7,250 RMB/ ton. The price fell 1.89% in the month, with the maximum amplitude of 3.99%, up 24.14% year on year.

At the beginning of September, after the early MTBE market price rose to a high level, the enthusiasm for receiving goods in the downstream became weaker. With the decline of crude oil and gasoline, the sales of merchants were not smooth, and the MTBE price followed the downward adjustment. In view of the replenishment before the Mid Autumn Festival, the demand has risen again, and it coincides with the sharp rise of crude oil, and the high level of other gasoline raw materials, and the price market has recovered again.

In the middle of September, the crude oil price rose first and then fell, and the market attitude was mostly wait-and-see. In addition, the downstream market demand was limited after the festival, and the gasoline market entered a downward adjustment. There were many negative factors in the market, MTBE merchants did not stick to it, and the price fell slightly.

In late September, MTBE merchants followed the trend of positive growth, boosted by the rising demand for downstream replenishment and the rising prices of crude oil and gasoline. However, with the sharp drop of crude oil again, the wait-and-see atmosphere in the market has risen again, and some traders are not optimistic about the future market. They began to sell in advance, resulting in blocked factory sales. From the second half of the week, the MTBE market entered a downward channel.

In terms of external market, as of the closing on September 27, the closing price of the Asian MTBE market had risen by 19.50 US dollars/ton compared with the previous trading day, and FOB Singapore closed at 835.99-837.99 US dollars/ton. The closing price of the European MTBE market rose by 14.75 US dollars/ton compared with the previous trading day, and FOB ARA closed at 908.74-909.24 US dollars/ton. The closing price of the US MTBE market rose by 22.12 US dollars/ton compared with the previous trading day, and the FOB Gulf price closed at 991.86-992.21 US dollars/ton (279.40-279.50 US cents/gallon).

For enterprises, as of September 28, the MTBE quotation of Shandong Chengtai New Materials has been reduced 50 RMB/ ton to 7,250 RMB/ ton. Shi Dashenghua lowered MTBE 50 RMB/ ton, and offered 7,250 RMB/ ton. Shandong Shenchi Chemical Co., Ltd. lowered the MTBE quotation 50 RMB/ ton to 7,250 RMB/ ton. Lihua Yilijin Petrochemical lowered its MTBE quotation 50 RMB/ ton to 7,250 RMB/ ton. Dongming Qianhai Chemical lowered its MTBE quotation 50 RMB/ ton to 7,250 RMB/ ton.

Near the National Day, some downstream businesses still have a short-term demand for replenishment, but the crude oil market drags the atmosphere of the entire industrial chain. SunSirs MTBE analysts believe that China domestic MTBE market may be volatile in the short term.

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