Sales Pressure on China MTBE Market to Grow

This week, as the MTBE unit at Shenyang Paraffin Chemical took overhauls from May 3 for two months, the national average operating rate of MTBE units at independent refineries was 51.62%, down 0.68% W-O-W. In Shandong, the average operating rate of MTBE units at independent refineries remained at 52.64%. Moreover, the national average operating rate of isomerization MTBE units remained at 41.53%, and the average operating rate of isomerization MTBE units in Shandong was 36.14%, unchanged W-O-W.

Currently, the 200kt/a isomerization MTBE unit at Shandong Chengtai Chemical Industry will be shut down for maintenance, but the MTBE unit at Shandong Chambroad Petrochemicals will be restarted. Besides, the units at Shandong Shenchi Chemical, Hebei Xinxinyuan Energy, etc. will be restarted in May. Thus, the overall operating rate of MTBE units at independent refineries will go up in May.

After the Labor Day holiday, the demand for gasoline remains sluggish, and the sales of MTBE underperform. Although some MTBE producers need to arrange resources for former contracts, most of them still intend to sell goods as soon as possible. If there is lack of bullish support, most MTBE producers will slightly cut prices to promote sales.