MTBE Market Shows Slight Fluctuations

September 05, News

According to the commodity market analysis system, from September 1 to 5, the price of MTBE rose from 5,007 CNY/ton to 5,036 CNY/ton, marking a price increase of 0.50% over the period. However, compared to the previous week, prices remained unchanged, while year-on-year, they fell by 16.30%.

The Chinese MTBE market experienced slight fluctuations as several major MTBE producers in Shandong and other regions concentrated on delivering September export orders. This led to a significant drop in the volume of available spot supplies on the Chinese market—driven partly by shipments being loaded for export. At the same time, some downstream operators still had immediate spot-purchasing needs, prompting manufacturers to adopt a cautious stance against selling at lower prices. As a result, prices generally moved upward.

Yet, as prices reached a temporary peak, downstream buyers began to grow wary, leading to a gradual softening in trading activity.

MTBE China production price average trend chart:

Cost Perspective: On the crude oil front, international oil prices declined, primarily due to the following negative factors: Reports indicated that OPEC+ is considering further production increases in October, heightening concerns about an oversupply risk. Additionally, the peak season for traditional fuel consumption in the U.S. is nearing its end, adding further pressure on the oil market. As of September 4, the settlement price for the November Brent crude oil futures contract stood at $66.99 per barrel.

Demand Side: On the downstream gasoline front, international crude oil futures experienced volatile downward movements. Meanwhile, logistical disruptions in the province and surrounding areas—caused by major events—slowed down transportation flows. As a result, end-users and traders showed weak purchasing intentions, with only a small number of buyers stepping in at lower prices, which failed to significantly boost refined oil market conditions. Refineries, meanwhile, are primarily focused on shipping volumes to manage inventory levels. The demand side for MTBE remains weighed down by bearish factors.

Supply side: Heilongjiang Xinrui Chemical and Huangshi Tianyuan facilities have halted operations, leading to a decline in the facility utilization rate. In the short term, supply-side factors for MTBE in China are relatively positive.

As of September 5, statistics on MTBE factory prices from selected production companies:

As of the close on September 4, the Asian MTBE market closed at $670.12–$672.12 per ton, down $12.3 per ton from the previous trading day, with prices quoted FOB Singapore. Meanwhile, the European MTBE market edged up by $7.75 per ton compared to the prior session, reaching $946.99–$947.49 per ton, FOB ARA. In the U.S., the MTBE market closed higher by $17 per ton, with prices at $835.64–$836 per ton, FOB Gulf offshore (equivalent to 235.95–236.05 cents per gallon).

Market Forecast: Raw material prices edged slightly lower, but cost pressures remain persistent, leaving manufacturers still operating at a loss. With no significant positive news on the horizon, the market is expected to continue its modest downward trend—though once it hits a certain low point, industry players are likely to become more active in entering the market. An MTBE analyst notes that China’s MTBE market is currently experiencing mostly narrow, sideways price fluctuations.