Despite Fluctuations in Methanol Values, Methyl Tert-Butyl Ether Prices Accelerate Across Globe
- 16-Jun-2022 2:42 PM
- Journalist: Peter Schmidt
Mumbai, India- With the rising conflict between Russia and Ukraine, the prices of Methyl tert-butyl ether (MTBE) increased due to healthy gasoline demand. The rising Russia-Ukraine conflict boosted the prices with strong market sentiments.
On the back of lucrative demand, the gasoline crunch increased the production cost of Methyl tert-butyl ether and prices surged. In India, the price of Methyl tert-butyl ether surged to USD 1780/ton (MTBE Pharma grade) Ex-Mumbai.
Malaysia’s Pengerang Refining and Petrochemical or PRefChem resumed its Methyl tert-butyl ether plant on 7th June 2022, which was shut down due to a fatal fire that hit its diesel hydrotreating unit at the refinery Johor’s site in March 2020. According to the sources, it was heard that the plant started with higher efficiency and production rate.
Let’s focus on the feedstock Methanol market; ample supply from Iran and Saudi Arabia to the Asian region puts pressure on the significant producers to clear their existing stocks. Ventures started providing discounts on product purchases with revisions in the price trend.
In the US, the spread between feedstock Methanol and downstream MTBE thinned, squeezing the profit and margins among the enterprises. Methyl tert-butyl ether hit high prices in Europe on strong demand from blenders and limited supply. High logistics costs and surging transportation prices surged the market of downstream gasoline.
According to ChemAnalyst, the prices of Methyl tert-butyl ether will observe an upward trend in the forthcoming weeks. Despite fluctuations in feedstock Methanol prices, healthy gasoline demand is expected to keep the Methyl tert-butyl ether market strong. The spread between Methanol and Methyl tert-butyl ether will be more likely to shrink further, affecting the enterprises' sales and profits. In India, the price of Methyl tert-butyl ether will also increase with healthy exports to the Southeast Asian region. The ongoing Russia Ukraine war will keep the upstream prices high, including Natural Gas and crude, which will regulate the global gasoline market.