MTBE Daily Review
Thread Content
Weak demand for gasoline continues to drive down MTBE prices (20151027). Summary table of domestic MTBE transaction prices: Unit: yuan/ton. Prices as of October 27th, along with daily changes and year-on-year variations: Shandong – 5100–5200, -24.82%; Northeast – 4800–5000, -50, -36.73%; North China – 5150–5200, -75, -27.37%; East China – 5350–5500, -25.68%; South China – 5800–6000, -21.07%
In the Northeast region, some local manufacturers are either fulfilling existing contracts or have not started selling products due to quality issues; as a result, there is little output of MTBE from this area. Today, manufacturers’ quotes tend to be stable. Currently, demand in the downstream market remains weak, and manufacturers lack confidence in future prospects, holding mostly bearish views. In the East China region, local MTBE plants are mostly operating at low capacity, and the supply of this resource remains limited; therefore, manufacturers tend to prefer a cautious approach today. Currently, the quoted prices by MTBE manufacturers in Anhui are around 5,350 yuan per ton, while in Jiangsu and Zhejiang they are about 5,500 yuan per ton. However, due to the weak performance of gasoline prices, it is difficult for MTBE manufacturers to maintain stable prices.
Are there more MTBE manufacturers in areas with lower prices?
There are many influencing factors such as the number of manufacturers, the source of raw materials, transportation costs, manufacturing costs, and administrative expenses.