China MTBE may stay flat on waning demand ahead of holiday

SINGAPORE (ICIS)–China’s domestic methyl tertiary butyl ether (MTBE) prices may stay largely flat this week as a result of weakened trading activities ahead of a week-long holiday.

Last week, spot prices of MTBE in south China were assessed stable at yuan (CNY) 6,100-6,300/tonne, according to ICIS data.

Prices of blended gasoline in the region, meanwhile, shed CNY40/tonne from the week-ago level to CNY6,875/tonne on 9 February, ICIS data showed.

Gasoline blenders and traders retreated to sidelines especially after the downward adjustment in gasoline retail ceiling prices on 10 February.

Moreover, many logistics operators have started to halt services as the Chinese Lunar New Year draws nearer.

Domestic refiners were holding medium-to-low inventories, with their average operating rate remained unchanged at around 54% in the week of 9 February.

China will celebrate its Lunar New Year during 15-21 February.

ICN