As of July 2024, MTBE prices in China fluctuated around USD 814 per metric ton, reflecting a 3.55% decrease from USD 844 in June. In Q1 2024, prices averaged USD 852 per metric ton, marking a notable increase of 5.16% to USD 896 in Q2, driven by recovering demand from key sectors, particularly automotive and fuel blending.
Throughout Q1 and Q2, global MTBE supply faced significant challenges due to maintenance shutdowns at essential production facilities, which led to output reductions. Geopolitical tensions in Europe further disrupted the availability of crucial feedstocks for MTBE production, tightening the market and contributing to upward price pressure.
In Q3 2024, the MTBE market is expected to experience ongoing price pressure due to strong demand from the fuel sector. As economies rebound, gasoline consumption is projected to rise, increasing the need for MTBE as an octane booster and emission reducer. Additionally, supply chain constraints and rising feedstock costs for isobutylene and methanol may limit availability. Regulatory trends favouring cleaner fuels could enhance MTBE’s market position, ensuring sustained demand. Seasonal spikes in fuel usage during summer months are likely to reinforce these trends.
Looking ahead to Q4 2024 and beyond, anticipated expansions in production capacity in North America may help stabilize prices. However, the market is projected to remain volatile through 2030, influenced by geopolitical developments, supply chain adjustments, and evolving demand dynamics. Stakeholders will need to navigate these complexities to manage pricing strategies and investments effectively.