News Code : 44700

360,000 mt/year of new MTBE capacity expected in China in the H2. 

Gasoline markets rise 3% on-day, crude up 4%. 

Asian MTBE was up $12/mt at $438.50/mt FOB Singapore June 26, driven by firmer gasoline and crude oil prices.

Gasoline prices were higher 3% on-day across the barrels, and the front-month ICE Brent crude futures were higher 4% on-day at $41.53/b at 4:30 pm Singapore time (0830 GMT).

In market news, around 360,000 mt/year of new MTBE capacity is expected to come online in China in the second half of this year, market sources said.

The new MTBE capacity might weigh on the market sentiment, which already hit by COVID-19 and recent second wave, a market source based in Southeast Asia said on June 26.

In China, Gulei Refinery Integration Project is planning to start new MTBE plant, with a nameplate capacity of around 60,000 mt/year, Sino-Kuwait Joint-Venture Guangdong Refinery Integration is aiming to start 200,000 mt/year of new MTBE plant, and Sinochem Quanzhou is expected to start up 100,000 mt/year of new MTBE unit in the H2, 2020, according to market sources. 

The week starting June 22, the FOB Singapore MTBE marker tumbled for two consecutive days on June 24 and June 25, falling $48.50/mt and $46.50/mt, respectively.

Platts Asian MTBE Daily Rationale & Exclusions  Asian MTBE was up $12/mt at $438.50/mt FOB Singapore June 26. 

During the Market on Close assessment process, no transparent  bids or offers were registered.

Given the unchanged inter-RON spreads, MTBE factor remained unchanged on-day at 1.190.

Based on the factor, the FOB Singapore MTBE marker, which takes the pricing average for cargoes loading 15-40 days forward, currently  from July 11-Aug 5, was assessed at $438.50/mt, up 2.81%. 

Platts

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