For the Quarter Ending March 2025
North America
In Q1 2025, the North American MTBE market witnessed a net price decline of 3.6% quarter-on-quarter, characterized by alternating periods of stability, minor surges, and sharp corrections. January began with relative price stability, supported by steady methanol costs and balanced supply-demand dynamics. However, a mid-month dip reflected reduced demand from gasoline blending and elevated inventory levels. A brief rebound followed, driven by tightened supply and rising crude oil prices, before stabilizing again at the month’s end.
In February, market dynamics fluctuated further. Early price drops were influenced by falling methanol and crude oil prices, alongside weaker domestic demand. Mid-month saw modest gains as export demand from Mexico and the Middle East picked up, but prices tapered off by month’s end due to high inventories and cautious market sentiment.
March saw volatile swings. Prices remained stable in early March, dropped sharply in the mid-month due to sluggish demand and oversupply, but rebounded in the final week amid renewed gasoline blending demand and stronger crude oil prices. Overall, the quarter ended on a cautiously optimistic note despite earlier bearish trends.
APAC
During Q1 2025, the APAC MTBE market displayed a predominantly bearish trend, with China recording a price drop of 5.09% compared to the previous quarter. In January, prices remained stable due to balanced supply and moderate demand ahead of the Lunar New Year. Short-lived gains were observed mid-month, supported by speculative activity and tight inventory. However, the momentum quickly faded post-holiday as demand weakened and oversupply intensified. The market in China faced headwinds from sluggish gasoline consumption, cautious downstream buying, and fluctuating crude oil prices. Supply-side factors, including plant shutdowns and production disruptions, added complexity but failed to offset the overall weak demand. In contrast, Singapore’s MTBE market experienced a temporary uplift in early February, driven by strong automotive sales and increased fuel consumption across Asia and the Middle East. Port congestion added pressure to supply, further supporting prices. Despite brief recoveries, Q1 ended on a soft note across the region, with market sentiment subdued and price corrections continuing into late March.
Europe
During Q1 2025, the European Methyl Tert-Butyl Ether (MTBE) market experienced fluctuating price trends influenced by shifting demand patterns and regional supply constraints. The quarter began with stable to slightly elevated prices, supported by steady gasoline blending activity and consistent procurement by downstream sectors. However, the momentum weakened by mid-quarter as macroeconomic uncertainties and a mild winter season reduced fuel consumption across several countries. Refineries across Europe operated at moderate utilization rates, maintaining adequate supply levels. Meanwhile, feedstock costs, particularly methanol and isobutylene, remained relatively unchanged, offering no substantial cost pressure. However, supply-side limitations emerged intermittently due to logistical bottlenecks and port congestion stemming from the ongoing Red Sea crisis, slightly tightening availability. In March, bearish sentiment gained traction, with declining crude oil benchmarks and softened demand from both domestic and export markets putting downward pressure on MTBE prices. Despite brief upticks due to inventory adjustments, the overall trend reflected market caution, closing the quarter on a moderately subdued note.
MEA
In Q1 2025, the Methyl Tert-Butyl Ether (MTBE) market in Saudi Arabia registered a marginal decline of 4.57% compared to the previous quarter. Prices remained largely stable throughout January, supported by balanced supply-demand dynamics and consistent production rates. Despite global volatility in crude oil and rising freight costs, the local market showed resilience due to ample inventories and steady domestic consumption. In February, prices witnessed fluctuations driven by mixed demand cues from exporting countries and occasional supply-side pressures. While brief upticks were recorded due to higher production costs and increased overseas demand, the overall sentiment remained cautious due to market oversupply and muted consumption in sectors like gasoline blending and solvents. March saw a return to a bearish trajectory, with declining prices fueled by surplus inventories, weak export interest, and subdued domestic demand. Despite stable methanol feedstock costs and Saudi Arabia’s efforts to sustain production levels, limited market activity and a sluggish international outlook contributed to the softening of MTBE prices toward the quarter’s close.
For the Quarter Ending December 2024
North America
The price of Methyl Tertiary Butyl Ether (MTBE) exhibited fluctuations in Q4 2024, with a general decline compared to Q3 but mixed trends throughout the quarter. Prices increased in October, decreased in November, and rose again in December, reflecting shifts in market dynamics.
October saw a significant price increase, supported by rising crude oil prices driven by geopolitical tensions and concerns over potential supply disruptions. Events in the Middle East, coupled with adverse weather impacts like Hurricane Milton, heightened market volatility and raised feedstock costs, contributing to MTBE price escalation.
However, this upward momentum was reversed in November as MTBE prices softened, primarily due to stable to declining methanol costs, which eased production expenses. Additionally, subdued demand from the gasoline blending sector weighed on market sentiment, further curbing MTBE prices. By December, the market rebounded as methanol prices climbed due to supply constraints and elevated production costs, increasing MTBE manufacturing costs. At the same time, strong seasonal demand from the gasoline sector, driven by heightened blending activities and regulatory compliance requirements, reinforced the upward trend, creating a complex pricing environment.
APAC
The price of Methyl Tertiary Butyl Ether (MTBE) in the Chinese market displayed a mixed trend in Q4 2024, starting with a decline in October before rebounding in November and December. The October downturn was largely driven by weakened gasoline demand and overcapacity issues among refiners, exacerbated by reduced fuel consumption due to declining demand for manufactured goods. Despite access to discounted crude imports, several private refiners faced profit challenges as fuel inventories increased, reflecting an oversupplied market. Additionally, a slowdown in fuel super tanker arrivals emphasized the reduced activity in the energy sector. However, the market regained momentum in November, supported by strong demand from the gasoline blending industry. Increased blending activity reflected heightened fuel consumption, which lifted MTBE prices and underscored its importance in meeting energy sector needs. December continued this upward trajectory, with robust demand from the gasoline sector driven by significant shipping orders and increased activity in the transportation industry. Rising crude oil prices further bolstered market confidence, maintaining an optimistic outlook for MTBE demand.
Europe
The price of Methyl Tertiary Butyl Ether (MTBE) in the European market remained mixed during Q4 2024, influenced by contrasting factors in the upstream and downstream sectors. Methanol, a key feedstock for MTBE production, witnessed surging prices throughout the quarter due to supply constraints and rising production costs, which exerted upward pressure on MTBE manufacturing expenses. However, the impact of higher methanol prices was unevenly reflected in MTBE pricing, as demand from the gasoline blending industry fluctuated. In some periods, strong seasonal demand for gasoline blending supported MTBE prices, with refiners increasing blending activities to meet regulatory and market requirements. Conversely, in other weeks, subdued fuel consumption and abundant inventories in certain regions limited the upward momentum of MTBE prices, creating a challenging trading environment. This interplay between rising feedstock costs and varied downstream demand created a complex pricing landscape, with refiners navigating higher input costs while responding to inconsistent consumption patterns in the gasoline market across the European nations.
MEA
The Middle Eastern MTBE market experienced a significant decline in prices during Q4 2024, influenced by a combination of demand and supply-side factors. In Saudi Arabia, the reduced demand for gasoline, a primary driver of MTBE consumption, created downward pressure on prices. Weak gasoline futures reflected this trend, as a softening in market demand combined with abundant supply weighed heavily on sentiment. Additionally, global crude oil benchmarks showed volatility throughout the quarter, influenced by geopolitical tensions and inconsistent production levels from key oil-producing nations, which indirectly impacted MTBE production costs and pricing. Seasonal trends further exacerbated the situation, with winter months leading to decreased driving activity and, consequently, reduced gasoline demand. On the supply side, robust production levels by refineries and blending units resulted in an oversupplied market, while traders adopted a cautious stance, limiting spot purchases in anticipation of further price declines. This convergence of subdued demand, oversupply, and fluctuating upstream dynamics created a bearish environment for MTBE in the region, driving prices downward.
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.
