For the Quarter Ending September 2024
North America
In Q3 2024, Methyl Tert-Butyl Ether (MTBE) prices in the North America region experienced a significant decline, driven by various factors. The market witnessed a substantial decrease from the same quarter last year, reflecting a challenging pricing environment. In the context of Q3 2024, the region saw a further 3% decrease from the previous quarter, indicating a continued downward trend. The first and second half of the quarter also showed a notable decline in prices, emphasizing the sustained negative trajectory.
In the USA, where the most significant price changes were observed, MTBE prices plummeted to USD 910/MT FOB USGC by the end of the quarter. This decline was influenced by factors such as weak demand from downstream industries, oversupply in the market, and reduced consumption in the gasoline sector. Additionally, fluctuations in crude oil prices and geopolitical tensions added pressure to the pricing environment. Overall, the pricing environment for MTBE in Q3 2024 has been predominantly negative, characterized by a continuous decline in prices and challenging market conditions.
Asia-Pacific
In the third quarter of 2024, the Methyl Tert-Butyl Ether (MTBE) market in the APAC region experienced a significant decline in prices, with Singapore displaying the most notable changes. The market sentiment was predominantly negative, influenced by several key factors. Supply dynamics played a crucial role as the market grappled with oversupply issues, leading to downward pressure on prices. Decreased demand from the gasoline sector further exacerbated the price decline, as weak consumer interest and subdued market activity persisted. Additionally, global economic uncertainties and fluctuating crude oil prices contributed to the overall bearish trend in the MTBE market.
Singapore saw substantial price changes, reflecting the broader regional trend. The quarter recorded a significant decrease compared to the same period last year, highlighting the prolonged downward trajectory. Quarter-on-quarter, prices decreased by 3%, and with the second half of the quarter experiencing a drop compared to the first half. The quarter-ending price of USD 755/MT FOB Jurong in Singapore underscored the prevailing negative pricing environment for MTBE in the APAC region.
Europe
In the third quarter of 2024, the European Methyl Tertiary Butyl Ether (MTBE) market continued to witness low trading activity and falling prices. This decline was primarily attributed to an oversupply in the market and limited consumption from downstream sectors.
Although there were efforts to stimulate demand by lowering prices, the market struggled to find a balance between supply and demand. Traders exhibited reduced enthusiasm for bulk trading in the region, reflecting a prevailing sense of weakness in market sentiment.
The overall market conditions were characterized by a surplus of supply and a subdued appetite for purchases, which further exerted downward pressure on prices. These circumstances highlight the ongoing difficulties in the European MTBE market, where attempts to drive demand have proven insufficient amidst an oversupplied market and lacklustre downstream consumption.
MEA
Throughout Q3 2024, the Methyl Tert-Butyl Ether (MTBE) market in the MEA region experienced a notable decline in prices, with Saudi Arabia showcasing the most significant changes. Various factors contributed to this downward trend, including weakened demand from the gasoline sector, reduced consumption due to shifting energy preferences, and lower urgency for MTBE purchases amidst a transition to alternative energy sources.
Additionally, increased natural gas production and robust gasoline output added to the supply-side pressure, further dampening market prices. The quarter saw a substantial -21% decrease from the same period last year, reflecting long-term pricing challenges.
Comparing to the previous quarter in 2024, the region recorded a 5% decline, with a notable 7% difference between the first and second halves of the quarter. Ultimately, the quarter ended with a price of USD 880/MT of MTBE FOB Al Jubail in Saudi Arabia, indicating a persistently negative pricing environment characterized by declining trends and subdued market conditions.
For the Quarter Ending June 2024
North America
In Q2 2024, the Methyl Tert-Butyl Ether (MTBE) market in North America experienced a consistent decline in prices, driven predominantly by subdued demand from the gasoline sector and a reduction in production costs. Several macroeconomic factors influenced this downward pricing trend. The overall weakening of market demand and heightened inventories pressured suppliers to lower prices. Additionally, fluctuations in international crude oil prices added complexity to cost dynamics, with oil prices exhibiting a stagnant and apprehensive performance. The easing of geopolitical tensions further alleviated any potential risk premiums on crude oil, impacting MTBE costs indirectly.
Focusing on the USA, the region saw the most significant price changes. The overall trend for MTBE pricing was negative, reflecting a 12% decrease compared to the same quarter last year and a 4% drop from the previous quarter in 2024. Seasonality played a role as well, with the summer driving season traditionally boosting gasoline demand; however, this year saw a muted impact. The first half of the quarter experienced a 5% higher price than the latter half, reinforcing the declining sentiment.
The latest quarter-ending price for MTBE underscored the negative pricing environment. This decline can be attributed to high inventories, low purchasing activities, and cautious downstream enterprises. Despite some periods of stability, the overall market sentiment remained bearish, with limited signs of demand rebound.
APAC
In Q2 2024, the Methyl Tert-Butyl Ether (MTBE) market in the APAC region experienced considerable price reductions, driven by a confluence of market dynamics. Key factors influencing the declining prices included ample product inventories, subdued demand from downstream sectors, and weakening crude oil prices. The global economic outlook remained tepid, further exacerbating the bearish sentiment. Additionally, intermittent production cutbacks and operational inefficiencies within major MTBE-producing facilities contributed to an oversupply scenario, pressuring prices downward. Focusing on China, the country witnessed the most pronounced price fluctuations in the region. Throughout the quarter, the Chinese MTBE market was characterized by weak demand from the gasoline sector, a primary consumer of MTBE, coupled with a cautious approach from refineries toward restocking at higher price levels. Seasonal maintenance shutdowns in some production units also played a role in maintaining high inventory levels, suppressing prices. The overall trend was one of steady decline, with market participants anticipating a bearish outlook due to the persistent supply-demand imbalance. Compared to the same quarter last year, MTBE prices in China saw a significant decline of 14%, illustrating the stark contrast in market conditions. From the previous quarter in 2024, prices decreased by 5%, indicating a gradual but consistent downward trend. Additionally, the price comparison between the first and second half of the quarter noted a 4% decrease, further emphasizing the negative sentiment that pervaded the market. This persistent decrease underscores a negative pricing sentiment throughout the quarter, driven predominantly by excessive supply and lacklustre demand fundamentals.
MEA
In Q2 2024, Methyl Tert-Butyl Ether (MTBE) pricing in the MEA region experienced a nuanced trajectory influenced by a confluence of significant factors. The quarter was marked by fluctuating crude oil prices, logistical constraints, and varying demand from the gasoline sector. The commitment of major oil-producing nations to production cuts, coupled with heightened market anticipation of interest rate adjustments, contributed to an initial uptick in international oil prices. However, the overall MTBE market remained bearish due to ample supply and moderated trading activity, despite sporadic increases in crude prices. Focusing on Saudi Arabia, the region witnessed the most pronounced price changes. The overall trend in Saudi Arabia's MTBE market was relatively stable, with only a minimal percentage change from the previous quarter, recorded at 0%. The price comparison between the first and second halves of the quarter noted a slight increase of 1%. This stability is attributed to persistent high inventories, cautious downstream operations, and a balanced supply-demand dynamic. Despite these challenges, the prices remained firm. Moreover, when compared to the same quarter last year, there was an 11% decline in prices, reflecting a less robust pricing environment. Seasonality played a significant role, with the early peak season and capacity constraints due to Red Sea diversions further tightening supply chains, thereby influencing MTBE prices. The pricing environment in Saudi Arabia, while stable on a quarter-to-quarter basis, demonstrated a consistent increasing sentiment driven by complex market dynamics, although the overall annual performance indicates a negative trend.
Europe
In the second quarter of 2024, the European market for Methyl Tertiary Butyl Ether (MTBE) experienced subdued trading activity and declining prices. This was primarily due to an oversupply situation and limited consumption from downstream sectors. Despite efforts to stimulate demand through lower costs, the market faced significant challenges in balancing supply and demand.
Traders showed diminishing enthusiasm for bulk trading ventures within the region, reflecting a weak market sentiment. The overall market dynamics were characterized by ample supply and a lacklustre buying appetite, which further contributed to the downward pressure on prices.
These conditions highlight the ongoing difficulties in the European MTBE market, with efforts to boost demand proving insufficient against the backdrop of an oversupplied market and weak downstream consumption.
For the Quarter Ending March 2024
North America
In Q1 2024, the Methyl Tert-Butyl Ether (MTBE) market in North America experienced a downward trend in prices. Several factors contributed to this decline. Weak demand and surplus supply were major factors that influenced market prices.
The decreased trading activity and limited buying interest from downstream purchasers led to a decrease in prices. Additionally, the weak Methanol demand and deteriorating market sentiments further impacted the MTBE market. In the USA, the price of MTBE saw significant decreases throughout the quarter. The overall trend in prices was negative, with a decrease of 24% compared to the previous quarter.
The price change from the same quarter last year was also negative, with a decline of 3%. The price comparison between the first and second half of the quarter showed a decrease of 12%. The quarter-ending price of MTBE in the USA was recorded at USD 1075/MT FOB USGC. This price reflects the overall decreasing sentiment in the market. Overall, the pricing environment for MTBE in Q1 2024 was negative, with prices experiencing significant declines. Weak demand, surplus supply, and deteriorating market sentiments were the key factors influencing the downward trend in prices.
APAC
The first quarter of 2024 has been characterized by a downward trend in Methyl Tert-Butyl Ether (MTBE) pricing in the APAC region. Several factors have influenced market prices, leading to a decrease in overall prices. The market has experienced a negative sentiment due to weak demand and oversupply. The reduced purchasing activity and sluggish market conditions have contributed to the declining prices of MTBE. Additionally, the decreased availability of export offers, and low trading volumes have further impacted on the market dynamics. China, in particular, has witnessed the maximum price changes in the APAC region. The overall trend in China has been negative, with prices declining by 2% compared to the same quarter last year. Furthermore, there has been a significant decrease of 16% in prices from the previous quarter in 2024. However, there has been a slight improvement in the second half of the quarter, with prices increasing by 8% compared to the first half. As of the end of the quarter, the price of MTBE in China stands at USD 925/MT EX Jiangsu. The pricing environment in the APAC region for MTBE has been predominantly negative, with decreasing prices and a bearish sentiment prevailing.
Europe
In the European market for Methyl Tertiary-Butyl Ether (MTBE), the landscape witnessed a notable shift characterized by subdued trading activity and waning buyer interest amid a weak MTBE market. Traders displayed diminishing enthusiasm for bulk trading ventures within the region, spurred by low buying appetite and lackluster market conditions. Throughout January, the spot price of MTBE experienced a decline, lacking adequate cost support, thus dampening market sentiments. During this quarter, the region did not experience any significant inventory pressure, and product availability remained sufficient. One notable trend observed was the ample supply of MTBE within the region, driven by surging production rates and low operating prices among manufacturing units. This resulted in an oversupply of products, contributing to the prevailing market dynamics. Despite the sufficient supply, demand for MTBE from downstream fuel additives experienced a sharp decline, particularly in the context of limited consumption from gasoline blending activities. Overall, the European MTBE market during this period was characterized by subdued trading activity, declining prices, and ample supply. Despite efforts to stimulate demand through lower costs, the oversupply situation and limited consumption from downstream sectors posed significant challenges to market dynamics.
MEA
The Methyl Tert-Butyl Ether (MTBE) market in the Middle East and Africa (MEA) region experienced a mixed pricing environment in the first quarter of 2024. Overall, market sentiment was negative, with prices fluctuating and influenced by various factors. In Saudi Arabia, the largest producer in the region, MTBE prices saw weak market trading fundamentals. Prices started the quarter at USD 1000/MT and experienced a decline of 2.5% to USD 975/MT in February. However, prices rebounded in March, increasing by 5% to USD 1030/MT. These price changes were mainly driven by a decline in feedstock crude oil prices, subdued buying interest, and reduced export offers to international suppliers. The market dynamics in Saudi Arabia were also influenced by a lull in the Gasoline blending market downstream, resulting in a decline in demand for MTBE. Furthermore, the region witnessed low inventories and cautious operating downstream enterprises, which further impacted the price trend. Compared to the same quarter last year, MTBE prices in Saudi Arabia have seen an overall increase. However, in the first quarter of 2024, prices declined by 3.88% compared to the previous quarter. In terms of seasonality, the market experienced a decline in prices in February, which is in line with historical trends. However, prices rebounded in March, suggesting a potential stabilization in the market.
For the Quarter Ending December 2023
North America
In Q4 2023, feeble trading fundamentals and sufficient product availability in the region forced the producers to keep MTBE prices on the lower end. Slow market offtakes and weak trading activities also affected the profit margin and revenue of the major enterprises.
Since buyers have turned to low-priced materials as an alternative for margin protection, MTBE offers have reduced overall market levels and increased competitiveness in the regional marketplaces. In North American market, the price of MTBE declined to USD 928/ton FOB USGC during Dec 2023. Regarding the upstream market, the rise in finished oil stockpiles in the US was more than anticipated, particularly the spike in gasoline inventories, which made the market's pessimistic view of fuel demand even more pronounced.
Furthermore, contrary to market expectations, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have not strengthened their output restrictions. The price of oil has been pressured by the prospect of a loose supply. Local inventories remain adequate in the region and the supply of MTBE remains abundant.
APAC region
In Q4 2023, MTBE market in China remain weak mainly attributed by weak cost support from the upstream market and limited purchases from suppliers to buyers. Since buyers have turned to low-priced materials as an alternative for margin protection, MTBE offers have reduced overall market levels and increased competitiveness in the regional marketplaces. Recently, purchasers have favored purchasing Chinese materials since Chinese bids are significantly lower than those from other origins. International crude oil futures had shown a slightly negative trend in terms of gasoline demand, while the refined oil market has ceased increasing and declined. In order to encourage sales, some refineries have correctly lowered their pricing, while downstream retailers are making on-demand purchases while using up inventories. Completing large orders on the market is difficult. The MTBE market has received some mild assistance from the downturn in the gasoline market. In China, the price of MTBE declined to USD 968/ton FOB Dalian during Dec 2023. Manufacturers like Qingzhou Tian'an and Debao Road have seen varied degrees of reduced operating loads, which has led to a decline in output. On the supply side, facilities like Shenyang Waxing and Dongying Qifa are still closed.
Europe
Muted trading activities and no firmer bids and offers were served from the suppliers and distributors to the buyers, which capped the prices to increase further in Q4 2023. MTBE markets continued to follow a declining price trend this quarter as feeble costs, the spillover impact from European markets, and surging stock pressure on import sellers underpinned markets. Fueling the bearish scene were additional price low from the local producer, declined the price trend in Germany. As we look at market fundamentals, trading fundamentals are hit doubly hard this time because we’ve seen a fall-off in economic activities coupled with one of the most aggressive de-inventorying phases. Market players remain hesitant to increase the product prices in fear of a decline in sales and revenue among the significant production units. The fundamentals of MTBE demand from the downstream Gasoline market remain weak, notwithstanding strong trade volume with the European region. Spain's suppliers have remained solid in their offerings as a result of feeble demand from import markets, continuous decline in the improvements in the country's domestic markets and slow market offtakes.
MEA
In Q4 2023, MTBE prices in Saudi Arabia witnessed a bearish price trend due to limited cost support from the upstream crude oil. While the refined oil market has ceased expanding and is now tumbling down, international crude oil has begun to demonstrate signs of weakness. In order to promote sales, some refineries have correctly lowered their pricing, while downstream retailers are making on-demand purchases while using up inventories. The supply of MTBE in the Saudi Arabian market remains adequate to fulfill the demand from the downstream enterprises. MTBE market faced challenges due to an imbalance in supply and demand, resulting in lower prices with limited cost support from the downstream Gasoline market. Current demand remains sluggish, particularly as the year-end approaches, leading to reduced purchases. Following significant losses caused by demand destruction in October, regional MTBE supply increased noticeably during the escalating war between Israel and Gaza. Domestic Middle Eastern markets maintained a low pace this month, while export prices fell owing to market liquidity, resulting in ample stocks. The supply of MTBE was abundant, and spot purchase activity declined as the price trend changed.
For the Quarter Ending September 2023
North America
When compared with the previous quarter, the market fundamentals of MTBE in the North American market surged with an increase in purchasing activities from the downstream enterprises. With the healthy demand for MTBE from the downstream Gasoline blending and high market fundamentals, the price trend surged. National average gasoline prices in the U.S. have been experiencing even more of a bullish trend than diesel prices. Nevertheless, the consumption of the MTBE from significant enterprises gave a boost to the market fundamentals. In the USA, the price of MTBE during Sept 2023 surged to USD 1470/ton FOB USGC. Exports of MTBE from the USA to the South American market also surged, and suppliers agreed to provide the cargo at an elevated cost in order to secure their profit margin and revenue. The high cost of refining still provides support for the price of gasoline in refineries, and the high demand gives refineries support to raise their quotations. Supported by the increase in upstream crude oil prices and surging production costs in the region, the MTBE showcased cost support this quarter. In terms of the feedstock market, WTI crude oil and Brent crude oil remain elevated at critical levels last seen in mid-April 2023.
Asia Pacific
In the Asia Pacific region, the MTBE prices gained a stance in the wake of healthy product demand and rapid commodity consumption. In Q3 2023, with the support of positive factors such as the rise in crude oil and the signing of a large number of export orders, some manufacturers began to export to the port, resulting in a tightening of resource supply. After the price rose to a high level, downstream resistance increased, and the market slightly corrected and reorganized. Subsequently, supported by the rise in crude oil, the price situation of MTBE pushed up. In terms of the downstream market, the demand for MTBE from the downstream Gasoline blending improved with an increase in production rate among the significant manufacturing units, providing cost support. In China, the price of MTBE during Sept 2023 surged to USD 1138/ton FOB Dalian. Because of the rise in crude oil prices and the bottoming out of export orders, domestic MTBE makers are maintaining low inventories and are under little pressure to trade, resulting in an elevation in the price trend.
Europe
In the European market, MTBE inventory was depleted amid a low production rate, and in view of recovery in the purchasing activities, which has dented the margin of MTBE, producers had surged their production rate to cope with the downstream demand. In Q3 2023, the price trend for MTBE elevated with strong market fundamentals when compared with the previous quarter. The downstream Gasoline blending market also increased with the continuous utilization of product inventories and surge in the product demand from the end-user. The profit margin and sales among the major enterprises are improving gradually with enhancing trading activities. Manufacturing activities remained elevated in the European market with limited supply and bullish demand. Spot MTBE prices were driven by high export prices of the cargoes to the European market. The downstream MTBE market remained bullish, with healthy demand and a surge in purchasing activities. On top of that, emerging European energy challenges put immense pressure on the production units to utilize their manufacturing plant cautiously.
MEA
In Q3 2023, the price of MTBE witnessed a bearish price trend with limited cost support from the upstream Methanol market. The demand fundamentals for MTBE declined in the wake of feeble purchasing activities and sluggish trading fundamentals. On the MTBE supply and demand side, producers continue to trim rates to keep inventories at a low level, and downstream consumers indicated a gloomy market sentiment. The trade of goods from Saudi Arabia to other Middle Eastern markets was also lackluster, and the trades were majorly held on an immediate basis. With a collapse in market fundamentals forcing manufacturers to trade cargo at negotiating prices, product stocks remain on the upper end of the supply spectrum. The methanol market in Saudi Arabia remains dull as a result of good inventory levels, little cost pressure, and a rise in production rate among important industrial units. However, in Sept 2023, MTBE inventory contracted along with a firmer trading stance. Regional MTBE producers also increased the prices for the domestic market, and the elevation in market demand from downstream ventures supported the price trend. Trades of MTBE from Saudi Arabia to other Asian regions surged with rebounded interest for bulk purchases.
For the Quarter Ending June 2023
North America
In Q2 2023, the purchasing fundamentals in the USA improved with high market fundamentals and cost support from the downstream enterprises. The support in the price trend was attributed to a gradual increase in trade volumes and high product demand from the downstream ventures, affecting the price trend. The demand for MTBE from the downstream Gasoline sector improved, and significant producers increased their production rates to keep up with the demand fundamentals. MTBE prices witness a steep rise in the price trend with the gradual utilization of inventories among enterprises. Since the demand for downstream gasoline is gradually recovering, coupled with the continuing upward trend in gasoline prices, raw material demand has increased accordingly. In the USA, the MTBE market showcased a brisk price trend with higher price buying activities. The improvement in the downstream Gasoline market, along with market participants in the trading activities, further boosted the price trend. Supply/demand imbalance in the US market continued to fuel selling interest among the suppliers with the revision in the price trend.
Asia Pacific
In the Asia Pacific region, the demand for MTBE from the downstream Gasoline and Pharma sector improved, providing cost support. Feedstock Methanol prices also surged due to an uptick in trading activities. With the increase in exports, the domestic supply has decreased, forcing the producers to increase the production rate to cope with the market demand. The MTBE demand from the downstream Gasoline market increased, and suppliers were purchasing the cargoes in bulk with high purchasing activities. However, the market remained saturated with product availability, and a drop in price trend was observed during June 2023. In South China, MTBE exports in June remained weak since many were traded within the last two months. Downstream resistance occurred due to lackluster demand, and manufacturers' shipments gradually slowed down, with a focus on profit and volume. At the same time, Shandong Minghao, Dongying Shenchi, and Shandong Chengtai have successively started construction, and the tight spot supply situation is gradually eased.
Europe
In Q2 2023, the price of MTBE slumped in the wake of limited market fundamentals and declining interest among consumers for bulk purchases. MTBE prices declined this quarter with bearish feedstock Methanol prices, declining the production cost. In Germany, the production cost of MTBE remained affected, and run rates were reduced due to oversupplies. Downstream Gasoline prices showed a downward trend with lackluster demand and tepid purchasing appetite. To maintain the margins, MTBE suppliers show reluctance to issue further discounts on their product prices. The demand for MTBE from the downstream industry is also affected by feeble utility costs and a bearish market on the demand front. End users hesitated to purchase the fresh supply amid their sufficient stock level. Ample trade of MTBE in the region further pressurized the producers with affected margins and narrowing profit. Regarding upstream values, oversupplies of Methanol at the time of weak demand had impacted the product's European margins. Weak market sentiments on sufficient product availability resulted in such a price trajectory in the European market.
MEA
Market purchasing activities slumped in the Middle East with low adequate trades in the previous quarter of cargos, resulting in weak cost support. In Q2 2023, the price of MTBE declined when compared with the previous quarter amid low product consumption from the end-user industries. Significant MTBE producers have approached the Middle Eastern market, plummeting with product oversupplies. They have cited lackluster demand from the markets, which remains the main reason behind their pricing policy, although inventories for MTBE cargoes remain adequate to fulfill the end user industries' requirements. In June 2023, the price of MTBE in Saudi Arabia declined to USD 1150/ton FOB Al Jubail. MTBE prices slumped because of bearish demand and limited utilization of existing inventories from downstream ventures. MTBE's offer declined due to the overall weak regional demand for Saudi Arabia cargo to the Asian market and the limited bidding for new stocks. There is no additional room for price increment with revision in the price trend for the global MTBE market.
For the Quarter Ending March 2023
North America
This quarter, the MTBE market started with a bearish note, with low purchasing activities and lackluster demand from the downstream Gasoline market. However, the demand recovered in Feb and March with an uptick in the trading fundamentals. In the USA, the MTBE prices surged due to limited supply from the domestic and overseas markets. Rising product demand and continuous utilization of inventories caused the price dynamics to rise. The improvement in the downstream Gasoline market, along with healthy market participants in the trading activities, further boosts the price trend. Supply/demand imbalance in the US market continued to fuel selling interest among the suppliers with the revision in the price trend.
Asia Pacific region
In Q1 2023, the MTBE market trading activities improved when compared with the previous quarter in the wake of strong demand from downstream ventures. The spot price discussions of MTBE in the region surged with firmer domestic demand from the downstream gasoline market. The sign of demand recovery disrupted the supply/demand dynamics, which increased the MTBE price trend. In Feb 2023, the price of MTBE in China surged to USD 1061/ton FOB Dalian. Towards the end of the quarter, the cost support lost its momentum in the wake of increasing production rates among the enterprises, which resulted in adequate product supplies.
Europe
In Q1 2023, the demand for MTBE in the European market remains brisk with the price support from the feedstock Methanol market. Significant producers revamp the prices for regional providers because of higher bids and offer for MTBE. There was a lack of accessibility to meet the territorial demand from the overseas market due to rising product interest, resulting in price hikes. The Downstream Gasoline market was also strong this quarter, and traders had looked forward to purchasing the product in bulk. MTBE prices have mostly retraced gains with higher spot prices and gradual improvement in spot trading activities. MTBE stocks were insufficient to fulfill the market requirement, and higher demand resulted in an elevation in the price trend.
For the Quarter Ending December 2022
North America
In Q4 2022, the MTBE prices showcased a Southward price trajectory along with adequate product availability and weak market fundamentals. In the US market, the slump in feedstock Methanol prices due to the declining upstream Natural Gas market, trading of MTBE inched lower. MTBE producers' inventory levels increased, pushing suppliers to clear stock levels. There were sufficient stocks in South America and weak demand for fresh supplies, resulting in a decline in exports from the USA to the region. The port inventories started to accumulate, declining the MTBE market's benchmark futures. In Dec, the price of MTBE in the US declined to USD 1118/ton FOB USGC.
Asia Pacific region
With declining spot and contract prices supported by adequate inventories among the ports, the MTBE market slumped with limited trading activities. The demand for MTBE from downstream Gasoline remains feeble, and suppliers are buying the product on a need-to basis. For the outlook for this quarter, the MTBE market is largely muted because of the uncertainties associated with the volatility in raw material prices. In China, the price of MTBE during Dec declined to USD 1005/ton FOB Dalian. Downstream demand for Gasoline blending narrows, and the profit margin among significant enterprises declines. Exports of MTBE from Singapore and India to other Asian countries declined, and suppliers offered discounts on bulk purchases.
Europe
The oversupply of MTBE in Europe and the accumulation of inventories in Q4 2022 resulted in a reduction in costs in Europe. In Germany, sentiments were imbalanced with weak interest rates. Due to basic production breaks that occurred in the final quarter, MTBE production slumped even more, causing unstable inventories. Similarly, the downstream gasoline market declined with weak support for the product, where its consumption for end users remained limited. In terms of inventories, MTBE cargoes traded in small quantities resulting in the accumulation of stocks among the ventures. The weak market fundamentals also affected the profit margin and sales of the enterprises.
For the Quarter Ending September 2022
North America
The price of MTBE in the North American region elevated in the third quarter of 2022 compared with the previous one. The cost of MTBE surged in the market, and the supply was insufficient to fulfill the consumer’s needs. Regarding inventories, high purchasing appetite resulted in the destocking of stocks and created supply/demand disruption. The rising utilization of MTBE in the chemical sector as a solvent and an alternative to Diethyl Ether in fuels is the primary factor for increased demand. In the International market, the demand for the product remains elevated, with healthy demand for the upcoming stocks from Singapore to the USA. In the US, the price of MTBE during September surged to USD 1253/ton FOB USGC.
Asia Pacific
In the Asia Pacific region, the price trend is opposite from that of the North American market. The prices faced South compared with the previous quarter. The supply of MTBE was sufficient and utilized by some industrialists where it was consumed in the downstream Gasoline. Inventories were still on the higher end pressurizing the producers to stock them out. MTBE market to be buoyed by arbitrage flow and supply cutback. At the end of the quarter, the price of MTBE in China slipped to USD 1158/ton FOB Dalian. Gasoline was largely repressed by falling interest and low purchasing appetite. The end-user industry worked their plant cautiously according to the prerequisite from the buyers.
Europe
This quarter, the price of MTBE remains elevated in Europe with high purchasing activities and rising demand for Gasoline. The flooding market sentiments of raw materials, natural gas, and coal this quarter influenced MTBE cost. Additionally, lower inventories with limited and deficient product accessibility in the local market influence the MTBE market sentiments. Strong downstream derivative market sentiments keep the product cost to be bullish. The lower Rhine River level and surging demand make it difficult to provide accessibility of a product in the region which also supported the price trend. In terms of feedstock, Methanol, supported by the Natural Gas cost market, is elevated with a high-profit margin among the producers.
For the Quarter Ending June 2022
North America
Surging gasoline demand lures MTBE's exports from Saudi Arabia to the US market. The costs of MTBE were seen to be on the upper end with further improved demand and a sound downstream market. Some MTBE makers had considered overcharges regarding higher energy costs and the expense and absence of container availability. The tight market because of raw material shortage confronted massive pushback from the purchasers. Major MTBE makers had kept costs flooded in the face of spiraling gas and power cost. However, accelerating freight charges and bullish demand in the US remained the critical factor for the price surge.
Asia Pacific
In Q2 2022, the price of MTBE surged in the Asian region with healthy demand from the US and European markets. China's export of a chemical used to work on the quality of gasoline flooded as producers took advantage of exorbitant costs abroad. Fuel markets have tightened as the peak summer demand period starts in the northern hemisphere, with supply limitedly upended by overturned exchange streams following Russia's intrusion of Ukraine. Substantial interest for arbitraged MTBE from Europe and the US reinforced Asian MTBE costs. However, rising MTBE supplies on better netbacks between local MTBE and FOB Singapore MTBE costs added some descending pressure.
Europe
In Q2 2022, the price of MTBE in Germany remained on the upper end throughout the quarter. Methanol and isobutylene prices surged the sales and revenue of the major producers in the European market. Surging Co-product prices along with forwarding cover for energy offset increased the input cost of MTBE in Q1 2022. Supply constraints and rising demand from the end-user gasoline industry supported the price trend. In the second quarter of 2022, the prices of MTBE inflated with strong market sentiments. The prices of MTBE increased drastically in Q2 2022 compared with the previous quarter. Substantial cost inflation in the product price boosts the market this quarter
For the Quarter Ending March 2022
North America
In Q1 2022, MTBE prices surged due to supply shortage and robust demand from downstream consumer’s end. Rising tension between Russia and Ukraine in the second half of the quarter further bolstered the shortage in the downstream gasoline industries. Downstream Gasoline prices rose significantly as major plant turnaround in second half of quarter affected the production units due to the surge in operating cost. Increasing sanctions on Russia from different regions reduced Natural Gas exports which surged the prices of MTBE in United States. In the first quarter, the price of MTBE surged by 3% in the domestic market as compared to the previous quarter.
Asia Pacific
In Q1 2022, South Korea discontinued the exports of MTBE to Russia in February, as the East Asian country joined the US and European Union in distancing itself from Moscow after the Ukraine invasion. Due to the fluctuating energy values, Asian MTBE market remained volatile, and several MTBE producers considered cutting their production rates due to high feedstock Methanol cost. In India, prices of MTBE in February were observed at USD 1474/ton. Major producers of MTBE closed their plants for maintenance in February and March which further elevated the prices. Due to surge in MTBE price in Singapore, the arbitrage window to move MTBE from China to Singapore has widened sharply in March 2022.
Europe
In Q1 2022, MTBE market remained robust following unprecedented surge in crude costs as compared to the previous quarter. The supply all through the region was hindered in the lieu of logistics issues with lack of transporters and labors across the region. Towards the last week of March, the expenses started to decrease due to sufficient stock and delicate market demand. In the first quarter, the price of MTBE in Germany surged by 2% compared with previous quarter. Russia-Ukraine war is deemed as the major factor behind the high volatility observed in the European MTBE market.
For the Quarter Ending December 2021
North America
In Q4, the prices of MTBE in US were climbed up compared to previous quarter of 2021. The prices hit its peak on November where they were observed to be hovering around $898/ton FOB USGC and $956/ton FOB USGC. The prices slightly dipped in December with the New Year approaching and increasing of new cases of Omicron towards the last week but overall, the market was strong. The price supported by coal shortage with surge in prices of Methanol and isobutylene. By the year end, weak trading activities and sufficient product supply accounted to feeble price.
Asia Pacific
The prices of MTBE in Asia region observed to be increasing in Q4 compared with previous quarters of 2021. prices supported by strong values of upstream crude and sturdy demand from Pharma industry in late-October. Demand for MTBE in India remained stable this week, traders had several inventories, therefore marginal change in prices was observed. As per the data, MTBE was negligible traded in the past month, however there were several imports from Israel at almost same price. In the last week of December, the prices of MTBE in India surged to the new height where prices of MTBE for the Pharma Grade were hovering around $1475/ton Ex-Bhiwandi-$1555/ton Ex-Bhiwandi. MTBE market in the Indian subcontinent has been mirroring global MTBE market pattern where market dynamics weakened towards the end of the year. Demand has also observed a phase of stagnancy in consumption stemming from plateaued demand growth from pharma sector.
Europe
In Q4, the prices of MTBE surged in Q4 in the European region compared with Q2 and Q3. Rise in feedstock Methanol and Acetic acid with healthy trading environment resulted in such trend. Demand of MTBE in Germany and Belgium stayed strong, with increase in demand from the downstream market. However, towards the end of the year, the gasoline remaining weak against Naphtha it become less profitable for gasoline blender to use Naphtha as a blending component, signifying also less need for Octane booster such as MTBE also the approaching New year had impacted the industries with low demand and increase in inventories among the enterprises.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, MTBE market showcased mixed sentiments in North American region. At the beginning of the quarter, a drop in the price of MTBE was seen due to the decline in the feedstock Methanol and Isobutylene values. However, in the latter half of the quarter, due to the arrival of Ida hurricane in the gulf coast of USA, many industries and refineries remained closed that made difficult for MTBE manufacturers to procure key raw materials that led to the abrupt hike in the values of MTBE. Additionally, Logistical issues cause by Ida hurricane further worsened the market dynamics of MTBE as it became challenging for distributors to move the product that influenced the MTBE prices both in the regional as well as in the international market in Q3.
Asia Pacific
In Asia Pacific, MTBE demand witnessed a healthy revival with the resurgence of industrial and commercial activities during the third quarter of 2021. In India, MTBE offtakes were substantially increased during this quarter and MTBE prices gained stability after receiving a constant plunge in the last quarter. However, a marginal surge in the values of MTBE was observed backed by the modest demand and spike in the feedstock Methanol and Isobutylene values in the international market as an impact of Ida hurricane.
Europe
In Europe, MTBE market outlook appeared bullish in the third quarter of 2021, followed by the robust demand for octane blending in Northwest Europe. However, MTBE supplies remained ample in the European region during this timeframe that kept the MTBE prices stable throughout the quarter. The market is set for stable demand recovery for the rest of the year as gasoline and octanes consumption rebounds across key markets. Besides an improvement in the market sentiments in Europe is expected to improve the MTBE fundamentals in the upcoming quarter.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, MTBE trading was bolstered as export volumes to the Europe and South Asian region surged in the second half of the quarter, owing to the restored industrial activities in the US Gulf coast. After the impact of winter storm Uri, the production rates improved at several manufacturing plants throughout the North American region. The MTBE pricing trend showed mixed results but stabilized by the quarter ending as healthy production margins and rising demand from Mexico provided the cost support in the US domestic market. FOB Texas MTBE offers in May were traded at USD 680 per tonne, taking cues from the improved market sentiments amidst the mass vaccination programme and surged the offtakes from the gasoline blending sector.
Asia Pacific
Overall MTBE demand outlook in India was curtailed in Q2 as the public movement was largely restricted amidst the rising COVID cases in India and reimposition of lockdown restrictions. Hence, India MTBE offtakes were significantly reduced in the first half of the second quarter. Demand remained steady in China as the imposition of consumption tax in mid-June by the Chinese authorities supported the MTBE pricing trend. Hence the Asian blenders kept a conservative approach to procure large volumes of MTBE. The gasoline blending demand in China and Malaysia remained pressured while domestic inventories in South Korea showed a rise in Q2.
Europe
MTBE supplies in the European region were surged as the mass vaccination programmes eased the public movement in the several parts across the Europe, strengthening the prospects for the regional gasoline blenders. Furthermore, the market outlook was supported by better shipments from the USA. Imports further eased as a major manufacture from the Middle East ended its turnaround in the second quarter. Constant offtakes from the pharmaceuticals sector further improved the MTBE demand in Europe. FOB ARA (Amsterdam-Rotterdam-Antwerp) MTBE offers were assessed around USD 687 per tonne in the first half of the quarter.
For the Quarter Ending March 2021
North America
MTBE supplies in the North American region were tight, during the first quarter of 2021. Rigorous freeze weather in the Texas and nearby US gulf region which forced to shut down several crackers as the several upstream plants could not operate in such cold weather conditions. However, the demand took a steep uptrend amid the short supply condition, hence resulting in reduced exports to other regions in Q1 2021. MTBE prices in the US surged by +USD 75/ton to USD 670/ton in FOB New York.
Asia-Pacific (APAC)
The Asian MTBE market remained largely constrained during Q1 2021. The supply tightness was largely attributed to tightened imports from the Middle East region, followed by turnaround at a major facility in SABIC. The supplies from the Middle East region were largely diverted towards the western region in anticipations of better throughput, which further led to supply shortfall in Asian markets. The demand from the gasoline blending industries, due to the resumption of industrial and commercial activities in the region. The constant consumption propped up the regional prices of MTBE in first half of the quarter. Moreover, globally short upstream supply in February inclined the prices by a significant percentage.
Europe
During the first quarter of 2021, MTBE supplies were constrained in the European region, as several facilities were operating at reduced efficiencies due to the severe cold weather in the north west European region. Furthermore, the domestic consumption declined due to lockdown in major parts of the region, which resulted in reduced demand from the downstream gasoline blenders. However, the market got a significant push with rising enquiries on export volumes to fill in the gap created by the US.
For the Quarter Ending September 2020
North America
As production was severely hit by heavy repercussions of Hurricanes in the US Gulf Coast region, supply crises remained persistent from early 2020 till the third quarter of 2020. The export potential of the region also weakened in comparison to the previous financial year as the consumption of petrochemical products slumped due to surging Covid-19 infections. However, the consumption of MTBE improved with respect to the previous quarter as various countries resumed the market activities with ease in Covid-19 containment measures. Overall, the US MTBE market suffered a loss since major part of domestic production caters the global demand.
Asia
Supply of Methyl Tertiary Butyl Ether (MTBE) in the Southeast Asian market remained mixed amidst several plant turnarounds and plant start-ups in the region. As by early September Chandra Asri of Indonesia started off its MTBE plant while by the September-end, S-Oil of Korea was heard implementing a maintenance turnaround at its MTBE facility. The supply crises were exacerbated by the turnaround at Taiwan’s Formosa plant in the second half of the third quarter due to a fire hazard at its upstream facility. Demand remained feeble due to reduced oil consumption as a repercussion caused by the global Pandemic. Reduced spread between derivative 92 RON gasoline and MTBE gave a prominent reflection of its reduced consumption in the regional petrochemical market, that consequently has a direct effect on its prices as well. However, the prices of MTBE pharma grade witnessed an appreciable rise in demand since the onset of Coronavirus. In line with the market outlook, prices of MTBE Pharma grade in India witnessed continuous upsurge and were assessed at USD 1250 per MT.
Europe
Considerable ease in containment measures across Europe provided a prominent ease in its supply fundamentals. In line with active resumption in market activities, operating rates also improved from July to September. Peak demand season in the European region aided the revival in consumption of methanol-based fuel oxygenate along the countries in the Mediterran8an region like Spain, Greece and Italy. Even after the resurgence of Coronavirus in several parts of the region, MTBE market remained balanced, driven by high seasonal demand.
