MTBE prices in China increased by 4.2% in early November from the decline observed in October. Inventory replenishment, refinery price hikes, and export focus supported gains, while crude oil weakness and cautious gasoline demand balanced the market amid supply adjustments and cost pressures.
After the downward trend in October, China's domestic Methyl Tert-Butyl Ether (MTBE) market recorded a notable rebound in the first half of November 2025. The price was up 2.8% in the first week of November and 1.4% in the second week, indicating that momentum has again appeared in the market after weeks of weakness.
During all of October, MTBE prices had been falling because of the off season for gasoline demand after the National Day holiday. As travel activities receded, manufacturers resumed production, increasing resource supply and putting pressure on shipments. Poor gasoline demand and various bearish factors suppressed sentiment, while the MTBE market remained in a consolidation position.
The start of November heralded signs of recovery, though. Downstream customers began to restock inventories in batches, thus easing the burden on MTBE producers and leaving some space for price adjustments. Operating rates were kept high, with some previously idled plants resuming production. Resource supply growth was only narrow, enabling the market to stabilize despite cost pressures that still lingered.
On the cost side, international crude oil prices declined, driven by poor global manufacturing data, concerns over oversupply and rising U.S. commercial crude inventories. While this created a bearish backdrop, China’s refined oil retail price limit was raised in the latest round, offering partial support. Market participants maintained cautious operations, with a strong wait and see atmosphere prevailing.
Supply dynamics also played a part in MTBE. The shutdown of the Bengu New Materials plant and the start-up of the Lihua Yi dehydrogenation facility changed output patterns, lifted operating rates but kept domestic supply relatively tight for MTBE. Some large enterprises continued to prioritize exports to ports, which did not enhance domestic availability and lent some support to MTBE prices.
In the second week of November, demand conditions improved modestly. Gasoline terminal demand was still stable, with businesses purchasing on demand. Downstream buyers welcomed the lower prices of crude oil to procure at lower costs, while positive news on refined oil export also helped raise sentiment. Refineries took advantage of the environment to hike prices, and interest in placing orders by intermediate traders improved, lifting the overall trading atmosphere for MTBE.
Looking ahead, analysts said that raw material prices may continue to operate at high levels, maintaining cost pressure. With big manufacturers focusing on exports and limited domestic output, the market may see further upward adjustments. Industry insiders added that it is possible for another price increase in the domestic MTBE market, supported by supply constraints and selective demand.
