US and Chinese MTBE Prices Soar on Peak Summer Demand

MTBE prices surged across both the US Gulf Coast and Chinese markets in late August, driven by peak summer blending demand and tight supply. The prices of MTBE (methyl tertiary-butyl ether) increased as refiners and blenders pulled prompt supplies to boost octane for summer driving formulations and seasonal gasoline specifications. In the US market, the price of FOB USGC MTBE firmed up, with feedstock showing no movement during the week. This indicates that product-level supply and demand fundamentals dictated the pricing outcome in the US market.

Gasoline blending demand remained the dominant price driver in both markets, as refiners operated within the elevated blending demand window. The strong demand for MTBE was not affected by the decline in crude oil prices due to improving US-Iran diplomatic sentiment and eased geopolitical supply risk premiums.