Falling MTBE demand bursts the methanol bubble

Journal Article · Wed Mar 01 04:00:00 EST 1995 · Chemical Week

OSTI ID:539184

Wiesmann, G; Cornitius, T

Methanol spot markets in Europe and the US have been hit hard by weakening demand from methyl tert-butyl ether (MTBE) producers. In Europe, spot prices for domestic T2 product have dropped to DM620-DM630/m.t. fob from early-January prices above DM800/m.t. and US spot prices have slipped to $1.05/gal fob from $$1.35/gal. While chemical applications for methanol show sustained demand, sharp methanol hikes during 1994 have priced MTBE out of the gasoline-additive market. {open_quotes}We`ve learned an important lesson. We killed [MTBE] applications in the rest of the world,{close_quotes} says one European methanol producer. Even with methanol currently at DM620/m.t., another manufacturer points out, MTBE production costs still total $$300/m.t., $30/m.t. more than MTBE spot prices. Since late 1994, Europe`s 3.3-million m.t./year MTBE production has been cut back 30%.

• OSTI ID: 539184
• Journal Information: Chemical Week, Journal Name: Chemical Week Journal Issue: 8 Vol. 156; ISSN CHWKA9; ISSN 0009-272X
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
33 ADVANCED PROPULSION SYSTEMS
BUTYL ETHER
EUROPE
FUEL ADDITIVES
GASOLINE
METHANOL
METHYL ETHER
PRICES
PRODUCTION
REFINING
SUPPLY AND DEMAND