In the first week of March, Methyl Tert-Butyl Ether (MTBE) prices in China remained stable; this comes amid the unfavorable overall global market scenario. Large drops in the international crude oil market severely damaged the price outlook for MTBE. But strong downstream demand for MTBE and reduced shipments from factories helped support prices essentially unchanged during this week.

Crude oil prices, one of the key feedstocks for MTBE production, witnessed a major fall and were at their lowest for the year. Several reasons have contributed to this sharp fall-in tariff concerns arising from U.S. trade policies, and OPEC+'s signal of slight production increases beginning in April. Also further depressing the oil market has been the unexpected rise in U.S. commercial crude oil inventories. These further pressure the oil market and, by extension, the pricing dynamics in MTBE. This is some negative news coming from the global oil market, yet MTBE prices in China have stood still during the first week of March.

In terms of demand, the refined oil market continued its downward slide, as refineries lowered prices to stimulate sales. With such price reductions seeing them stride with caution, intermediate traders have been disinclined to place large orders. In addition, downstream users have been buying selectively, with purchases basically based on immediate requirements and running down existing stocks. As observed by the nature of the transactions, for the most part, they are relatively small; hence the market volatility is kept at a minimum.

Challenges with supply have affected domestic MTBE production. Some key manufacturers such as Shandong Chengtai and Lu Shenfa have announced plans to shut down, which will, in turn, affect MTBE's overall supply. However, given poor early shipments, many manufacturers have accumulated significant inventories, somewhat cushioning the effects that the shutdowns will have on the overall market. Besides, MTBE's supply in the short term will remain weak, while the market is gripped by bearish factors on a global and national scale.

In the meantime, market participants expect marginal weakness in the domestic MTBE market. Global oil market instability restrained behavior from traders, and probable domestic supply disruptions could provide a prolonged period of sluggish MTBE market conditions in China. Overall, during the first week of March, the price trend for MTBE in China was maintaining stable. However, uncertainties incited from the global market and domestic supply issues can turn into aspects that will future impact market trends.