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.
