An Uptick in Trading Activities Strengthens the Global MTBE Market
- 06-Mar-2023 12:48 PM
- Journalist: Emilia Jackson
Shanghai, China- Global Methyl Tert-Butyl Ether (MTBE) prices witness a steep rise in the price trend with enterprises' gradual utilization of inventories. The demand for downstream gasoline is gradually recovering, and it is continuing an upward price trend. In terms of the feedstock market, global Methanol prices remain steady on the higher end this week.
With the week ending on March 03, 2023, the price of MTBE in China surged to USD 1042/ton FOB Dalian with a week-on-week incline of 2.25%. The spot price discussions of MTBE in the region surged with firmer domestic demand from the downstream gasoline market. The sign of demand recovery disrupted the supply/demand dynamics, which increased the MTBE price trend. The MTBE Ex-quotation also surged with a revision in the price trend for the domestic and overseas markets. With the increase in exports, the domestic supply has decreased, forcing the producers to increase the production rate to cope with the market demand.
In the US, the MTBE market showcased a brisk price trend with an increase in buying activities. Prices for MTBE surged to USD 1126/ton FOB USGC with a weekly increase of 1% for the week ending on March 3, 2023. The downstream gasoline market improved, and the boost in trading activities resulted in cost support. Supply/demand imbalance in the US market continued to fuel selling interest among the suppliers with the revision in the price trend. Feedstock Methanol prices also surged due to an uptick in trading activities.
According to ChemAnalyst, the MTBE prices in the global market will improve with healthy purchasing activities and gradual consumption of inventories among enterprises. Fresh offers of MTBE will increase, which will provide disruption in the supply/demand dynamics. The suppliers will also increase the Ex-quotation prices of MTBE to improve the profit margins with higher March cargoes trading overseas.