Business associations: MTBE market prices rose sharply in August
According to the data of business associations, the market price of MTBE rose sharply in August. At the end of August, the price of MTBE was 5966 yuan/ton, which was 8.16% higher than the price of 5516 yuan/ton at the beginning of the month.
II. Market Analysis
Products: Domestic gasoline market rose slightly in August, but with the expected support of the Mid-Autumn Festival, the market bullish sentiment is strong, driving up the MTBE market prices.
Industry Chain: In August, Sino-US trade relations fluctuated and global risky assets plunged. Despite the firm attitude of OPEC and other countries to reduce production and the boost of U.S. crude oil production and inventories, international oil prices showed a general trend of fluctuation and decline. The monthly decline of WTI international crude oil futures price was 4.78%. However, August is the peak season of gasoline demand, and the demand for vacation travel supports the demand of domestic MTBE market.
Market: Influenced by the decline of international oil and gasoline prices in early August, MTBE market prices kept stable operation. In the latter half of August, the downstream market just needed to recover quickly. Intermediary purchasing was active. MTBE manufacturers’shipment prices rose smoothly and rapidly. Domestic MTBE plant start-up rate also increased to 52.32%, but still fell by 0.67% compared with the same period last year.
3. Future Market Forecast
Analysts of MTBE products of Business Society Energy Branch believe that the gasoline market price will continue to rise with two holidays in September, but the total price of MTBE will rise by 20% in July and August. It is expected that the domestic MTBE market will be dominated by digestive growth in September, and the price of MTBE will remain stable.