FOB Singapore MTBE hits over 5-month high on limited supply with China away

The prices of Singapore Straits-origin MTBE hit an over five-month high on Feb. 20, according to data from Platts, part of S&P Global Energy, on limited supply due to the absence of Chinese production amid the Lunar New Year.

Platts assessed MTBE FOB Singapore at $688.54/mt at the Asian close Feb. 20, the highest since Sept. 17, 2025, when prices were assessed at $689.90/mt. At 12 pm Singapore time on Feb. 23, prices were pegged slightly lower at $686.64/mt.

Market sources said Chinese production had dried up in the week ended Feb. 20 amid the festivities, adding that little change in market conditions was expected in the near term.

The absence of Chinese supplies left the Straits region short of MTBE despite no visible improvement in blending demand yet, a trader in Singapore said.

"From my understanding, the Chinese were closed for so long [that] for Malaysian buyers, the only way to bring spot cargo is to pay market price," the trader said.

A Chinese producer said that the recent rise in oil prices has also helped sustain higher MTBE prices. "I think because of the Brent push over the Chinese New Year, feedstock prices increased [and] not really because of high demand," the producer said.

Crude futures finished the week to Feb. 20 nearly 6% higher as uncertainty surrounding US tariff policy eased and traders focused instead on US-Iran tensions.

Oil prices fell slightly as the Asian market opened Feb. 23, but remain above $70/b.

Over the past several weeks, blending demand in the Straits region has been subdued, market sources said.

A stronger gasoline pull from regional buyers over the next several weeks may help revive blending demand, but the recent price rise is purely supply-driven, the Singapore-based trader said.

"I don't see any increase in blending demand in the Straits. Your gasoline price is in contango [so a] lot of cargo is going around," the trader added.

Chinese return in focus

Once Chinese participants are back after the holidays, their production will be closely watched, trade sources told Platts.

Due to razor-thin margins, Chinese producers were curbing production, which has also helped sustain higher prices recently, a second trader in Singapore said.

Chinese producers are banking on sustained arbitrage demand as preparations for the European summer driving season will begin, while Latin American demand will further help digest Chinese production, the trader said.

"So they will try to hold the prices higher, but it depends on whether the deep-sea market can still absorb the higher prices [for Chinese cargoes]," the second Singapore-based trader said.

Buyers in the Straits will hope to bring prices lower, though tight supply may leave them with limited bargaining power, the trader added.

"I think if Straits is short, prices will hold [and] I feel if [cargo is] really needed, they might not have a choice," the trader added.