World Analysis – Methyl Tertiary-Butyl Ether (MTBE)

Long-term outlook to 2060

Methyl tertiary-butyl ether (MTBE) is produced through the reaction of methanol with isobutylene and is primarily used as a high-performance gasoline blend component. Its excellent blending characteristics—most notably its high octane value and low vapor pressure, make MTBE an effective oxygenate that promotes cleaner and more efficient fuel combustion. Beyond the gasoline pool, secondary applications are limited and largely tied to the production of high-purity isobutylene (HPIB), an important chemical intermediate.

Historically, MTBE demand expanded rapidly following the global phaseout of tetraethyl lead in the late 20th century, as refiners sought safer, environmentally compliant octane enhancers. Increasing regulatory pressure on vehicle emissions further supported the adoption of oxygenates like MTBE to reduce exhaust pollutants.

However, MTBE demand has experienced significant volatility over time, a defining feature of the fuel ethers market. Consumption trends are influenced not only by gasoline demand but also by shifts in fuel specifications, environmental regulations, and regional policy developments. A major turning point occurred in the early 2000s, when MTBE was removed from the U.S. gasoline pool due to environmental concerns and strong advocacy for ethanol as an alternative oxygenate. This change caused global MTBE demand to decline by nearly half, as the United States had previously been the world’s largest consumer.

Despite its domestic phaseout, the United States remains a major MTBE producer due to advantaged feedstock economics, exporting nearly all volumes produced into global markets.

Long-term outlook to 2060

The World Analysis – MTBE provides an in-depth assessment of the global MTBE market, providing comprehensive analysis and strategic insights into the key developments shaping long-term supply, demand, trade, and pricing outlooks. This service equips industry participants with the analytical foundation needed to navigate market volatility and anticipate structural shifts across the MTBE value chain.

Subscribers gain access to a full suite of reports, data files, analytical tools, and visualization modules, available online and downloadable from our website, including:

• A strategic report outlining critical insights and the future trajectory of global and regional markets

• Online Data Browser access to supply, demand, and capacity databases

• Continuously updated company/shareholder capacity listings, capacity integration analysis, and rankings of top producers/consumers, including surplus/deficit capacity profiles

• A comprehensive Data Appendix (Excel) featuring supply/demand and capacity tables, plus a dashboard with standard visualizations for all countries and regions

• Excel data files with long-range supply/demand graphics and price forecasts through 2060, along with detailed trade grids showing country- and region-level trade flows with 5- and 10-year projections

• An interactive online dashboard visualizing capacity, integration, supply/demand balances, trade flows, and price, cost, and margin forecasts

• Explanatory Notes detailing data sources, methodology, assumptions, units, conversion factors, and full World Analysis deliverables

• Energy and macroeconomic assumptions used in the long-term outlook

• Price assessment methodology and forecasting framework

In addition to the leading products, MTBE and ETBE, capacity data are also provided for the following products:

• High Purity Isobutylene (HPIB)

This World Analysis provides detailed intelligence on capacities, production, demand, and trade across all major producing and consuming countries, regions, and global hubs. While robust data collection underpins the historical and forward views, the true value of the service lies in the expert interpretation and market analysis applied by our global team.

Data verification is a central pillar of our approach. Direct engagement with key industry participants ensures that our conclusions reflect real-world market behavior and deliver the most accurate, realistic forward outlook for the global MTBE industry.

Long-term outlook to 2060