The Global MTBE Market Stabilizes on the Lower End with Weak Trading Activities

Shandong, China- The global Methyl Tert- Butyl Ether (MTBE) prices showcased a weak price trend with bearish trading activities and a slump in spot price discussions. With the week ending on 27th Jan, the price of MTBE in China was USD 1067/ton FOB Dalian. Limited product demand and adequate inventories among the enterprises in China remain major concerns among the suppliers.

Over the past few weeks, the Lunar New Year holidays have muted trading activities with limited purchasing from downstream enterprises. However, after the festival, the market still suffers from lower interest in the product from the downstream ventures. Regional players have been wrapping up their January MTBE deals, mostly with reductions. As the month draws to a close, voices for a potential price stabilization are anticipated to emerge on the seller's side for the next month. Feedstock Methanol prices stabilized in China, suppressed by supply exceeding the demand.

In the USA, the MTBE prices stabilized on the lower side this week due to limited demand from the domestic and overseas markets. Exports of MTBE from the region to South America also declined with a revision in the price trend. With the week ending on 27th Jan, the MTBE price in the USA stabilizes at USD 1096/ton FOB USGC. The demand for MTBE from the downstream gasoline blending remains stable, and the product was traded as per the end-user requirement. Spot trading remained slow, demand was feeble, and the supply-demand imbalance remained intact with run rate cuts among the production units.

According to ChemAnalyst, the global MTBE market will improve with healthy demand among the suppliers. As a result of healthy demand in the downstream gasoline blending sector, ChemAnalyst anticipates MTBE prices to surge in Asian countries. As exports increase, China's domestic supply of MTBE will more likely decrease due to strong regional demand. In the downstream sector, there will be a substantial increase in market sentiment due to the improvement in MTBE demand from South America, which will increase the exports from the USA.