China’s MTBE prices to rise further on firmer crude, demand
23 July 2012 09:24 [Source: ICIS news]
SINGAPORE (ICIS)--Prices of methyl tertiary butyl ether (MTBE) at ?xml:namespace>Shandong in China are expected to continue increasing in the short term, because of rising crude oil prices and strengthening demand, market sources said on Monday.
Prices of MTBE with around 98% purity were at yuan (CNY) 8,250-8,350/tonne ($1,295-1,310/tonne) in Shandong on 23 July, an increase of CNY600/tonne from a week before, traders said. By: Song Jing +65 6780 4359
MTBE prices in Shandong started to rise on 9 July because of rising crude oil prices.
Brent crude prices exceeded $107/bbl in the week of 16 July, after rising for seven consecutive sessions.
This supported expectations that gasoline and diesel prices in China may be hiked in the middle of August and that will consequently drive up the prices of MTBE, market players said.
In China, 90% of MTBE is consumed in the gasoline blending market.
Gasoline blenders and traders, who were previously keeping low inventories in anticipation that prices will drop, are now showing stronger interest in restocking because of the pick-up in MTBE prices, traders said.
Gasoline consumption in China typically peaks in the July-September period because of the increase in travel activities.
($1 = CNY6.37)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial
to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free
trial to ICIS Chemical Business.