SunSirs: China MTBE Market Rose first and then Fell in November

According to the data of SunSirs, the MTBE price at the beginning of the month was 6,810 RMB/ ton, and the MTBE market price at the end of the month was 6,880 RMB/ ton, with a monthly price increase of 1.03%, the maximum amplitude of 8.22%, and a year-on-year increase of 7.40%.

At the beginning of November, as the early MTBE market price fell to a low level, downstream businesses began to replenish at a low level. At the same time, export negotiations increased, foreign demand increased, and the MTBE market atmosphere became warmer. In addition to the continuous rise of crude oil and gasoline, many enterprises raised the ex factory quotation to 7,200 RMB/ ton at the weekend.

In the middle of November, influenced by the rising crude oil market, the MTBE market continued the rising trend of last week, and the ex factory quotation of some enterprises increased by about 150-200 RMB/ ton. At the same time, domestic export orders increased, so the market supply was tight, and the price rose.

In the last ten days of November, the international crude oil price rose and fell frequently, the MTBE market rose slightly, and the overall narrow range fluctuated. The ex factory quotation of some enterprises was adjusted several times, and the rise and fall range was not large, about 50-100 RMB/ ton. With the rise of MTBE price to a high level, the cost of downstream gasoline merchants has greatly increased, and they are losing interest in raw material procurement, and the sales of MTBE merchants have declined.

At the end of November, the crude oil continued to decline, with a strong pessimistic atmosphere in the market. In addition, the export profit was low, and the market export negotiations were light. At the same time, the domestic demand was flat. The sales pressure of merchants gradually emerged, and they had no choice but to follow the decline and adjust.

In terms of external market, as of the closing of November 28, the closing price of the Asian MTBE market had decreased by 57.50 dollars/ton compared with the previous trading day, and FOB Singapore closed at 866.49-868.49 dollars/ton. The closing price of European MTBE market decreased by 22.75 dollars/ton compared with the previous trading day, and FOB ARA closed at 1,035.49-1,035.99 dollars/ton. The closing price of the MTBE market in the United States decreased by 42.85 dollars/ton compared with the previous trading day, and the FOB Gulf price closed at 911.74-912.09 dollars/ton (256.83-256.93 cents/gallon).

For enterprises, as of November 28, MTBE of Shandong Chengtai New Materials was stable, with a quotation of 7,200 RMB/ ton. Shi Dashenghua MTBE quoted 6,800 RMB/ ton. Shandong Shenchi Chemical Co., Ltd. lowered MTBE by 200 RMB/ ton, and offered 6,800 RMB/ ton. Lihua Yilijin Petrochemical lowered its MTBE quotation by 200 RMB/ ton to 6,800 RMB/ ton. Dongming Qianhai Chemical lowered its MTBE quotation by 300 RMB/ ton to 6,800 RMB/ ton.

Downstream demand is weak, and the sales pressure of merchants reappears. SunSirs MTBE analysts believe that China domestic MTBE market may still decline in the short term.

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