FOB Singapore MTBE prices hit more than 4-month high as demand strengthens

Straits-origin methyl tertiary butyl ether prices rose to their highest since September 2025 due to expectations of stronger buying interest amid potentially tighter supplies, according to market sources.

Platts, part of S&P Global Energy, assessed Asian MTBE FOB Singapore at $677.79/metric ton on Feb. 10, up $14.62/mt day over day and the highest since Sept. 29, 2025, when it was assessed at $681.57/mt.

A trader in Singapore said the gains reflected a recent increase in buyer tenders in the region, with more tenders anticipated in the coming weeks.

"It seems March [has] a lot of buy tenders. Once summer hits and demand comes, probably that is when blending requirements [in the region] would increase," the trader said.

CPC Corp. awarded its buy tender for two March‑delivery 5,000 mt cargoes to a trading house at a differential to the MTBE weekly Mean of Platts FOB Singapore, according to market sources.

Malaysia's Hengyuan Refining also issued a buy tender seeking five cargoes of 5,000 mt each for March-delivery MTBE. The tender closed Feb. 10.

Prices in the Straits region have risen over the past few weeks, mainly driven by stronger oil prices, according to market sources.

Crude oil futures rose in afternoon Asian trading on Feb. 11 as geopolitical tensions in the Middle East persisted, with US President Donald Trump hinting at sending another aircraft carrier if nuclear deal talks with Iran were to break down.

S Korean supply

Market sources said MTBE prices could be supported by potentially tighter supplies in South Korea, as S-Oil will shut its 350,000 mt/y No. 2 MTBE production line in Onsan for planned maintenance in March.

Optimism for higher MTBE demand in Asia could be further boosted amid expectations that South Korea may consider importing MTBE for domestic consumption.

"I am also seeing a tight [supply situation] in South Korea," a domestic producer said.

As domestic production slows, some producers may turn to imports to meet local demand.

"We, too, foresee that South Korean MTBE demand will increase, [so] yes, we are anticipating some imports," a second domestic producer said, adding that they have no immediate plans to raise production levels.

The first South Korean producer said it has no plans to increase production yet, citing capped cracker capacity and higher upstream feedstock costs.

"We are quite balanced, but if we can ramp up naphtha cracker-center operations, we can sell [more MTBE cargoes]," the producer said.

Chinese market

Supplies in China are expected to remain tight as sellers redirect cargoes to arbitrage markets in Europe and Latin America, according to market sources.

However, some Chinese producers do not have plans to increase output.

"The MTBE plant is suffering losses every month," a Chinese domestic producer said, citing high feedstock costs.

Anqing Taiheng shut its 800,000 mt/y MTBE production line in Jiangsu for planned maintenance, a company source said Feb. 9.

The shutdown began Feb. 6, and there is no fixed timeline yet for the plant's restart, which will depend on how upstream prices evolve, said the company source.

Platts assessed the FOB China marker at $658/mt on Feb. 10, up $3/mt from the previous day.