Global MTBE Prices Strengthen Amid Soaring Fresh Purchases
- 10-Apr-2023 2:34 PM
- Journalist: Sasha Fernandes
Beijing, China- In the global market, Methyl Tert-Butyl Ether (MTBE) prices this week showcase an upper price trend in light of bullish market trading fundamentals and progressive demand recovery from the downstream ventures.
In the Asian region, the MTBE market gains its trading momentum with a slight incline in crude oil prices. In China, the demand from the downstream Gasoline market improved with tight inventories, resulting in such a price trend. In South China, MTBE exports in April will be short since many were traded within the last two weeks. Spot price activities in South China have surged this week with bullish market fundamentals. With the week ending on 07th April, the MTBE prices in China surged to USD 1066/ton FOB Dalian with a weekly incline of 6.06%.
In the USA, the spot trading activities of MTBE remain active, with the demand seeming to return to the regional market. MTBE market remains bullish on the back of improvement in Gasoline futures, gradual utilization of existing stocks, and health requirements for fresh stocks. The price of MTBE in the USA surged to USD 1116/ton FOB USGC with the week ending on 07th April. Exports of MTBE from the USA to the South American region also traded moderately, as per the end-user. The trading volume of MTBE from the downstream Gasoline blending remains brisk, and high market fundamentals further support the price trend.
ChemAnalyst expects MTBE prices to improve in the forthcoming weeks due to the accelerating demand and healthy product requirements from downstream Gasoline enterprises. Inventory levels in China and the USA will decline gradually, and limited supplies will disrupt the supply/demand dynamics, increasing prices. The trading market will grow with healthy exports from the USA and China to the global market. Low freight costs, however, will make transportation subtle, and sufficient vessel availability will make Petrochemical transportation easy.