pankaj rao

Methyl tert-butyl ether (MTBE) market is expected to remain oversupplied as producers continue raising operating rates despite weak domestic demand and renewed Middle East conflict threatening feedstock availability, market sources said. The persistent glut is forcing Chinese MTBE producers to aggressively pursue export markets, particularly in Latin America, as domestic consumption fails to absorb the growing output.

Asian chemical producers are likely to maintain low production rates in the near term as feedstock availability remains a concern due to the Middle East conflict, despite the announcement of a much-awaited peace deal, producers, traders and other market sources said. Several Asian chemical producers have opted to entirely or reduce operations, as key feedstocks such as butane and naphtha supplies tightened and became expensive, sources said.

Indian buyers are seeking cheaper Chinese methyl methacrylate (MMA) imports as domestic supplies tighten, while rising Chinese production weighs on spot prices, according to producers, buyers and traders based in India and China. Over the past several weeks, producers in China have been actively locking in deals with buyers in India at lower prices, market sources said.