Material Insights · Understanding the Material World

MTBE: Production

China's overcapacity and the US export pivot

China's overcapacity and the US export pivot What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.
MeasureFigureDetailSource
World capacitynot published in sources reached; China has overcapacity (S&P Global, 2025)S&P Global (H1 2026 trends)
World outputabout 30-33 Mt (2024, derived)Energy Aspects (2026), derived
Capacity utilisationnot publishedMany Chinese plants ran at low margins or losses in 2025 (S&P Global).S&P Global (H1 2026 trends)
ConcentrationAsia more than half of demand; China more than half of AsiaTop-3 company shares not published.Energy Aspects (2026)
New capacityat least 1.26 Mt of new Chinese capacity in 2026Zhenhua Petrochemical 660 kt; Sinopec Zhongyuan 600 kt (S&P Global). Chinese exports to Europe and Latin America expected to rise.S&P Global (H1 2026 trends)

Top producing countries

  • China: largest consumer and producer; more than half of Asian demand, Asia more than half of world
  • Southeast Asia and Oceania: second-largest consumer region (2024)
  • Middle East (Saudi Arabia): third-largest consumer region; major exporter to Europe and Asia
  • United States: producer and exporter; about 1.33 Mt exported in Jan-Aug 2025 (derived from 1.115 Mt to Mexico = 84%)
  • Europe: flat demand; shift to ETBE in Italy and elsewhere
Energy Aspects (2026); S&P Global CEH (2025); S&P Global CEH (2025); S&P Global CEH (2025); Energy Aspects (2026); USITC via S&P Global (2025); S&P Global (H1 2026 trends)

Largest producers: global

CompanyCountryVolumeYearSource
Sinopec total capacity not verified China0.6 Mt new capacity planned at Zhongyuan Petrochemical 2026S&P Global (H1 2026 trends)
Zhenhua PetrochemicalChina0.66 Mt new plant planned 2026S&P Global (H1 2026 trends)
SABIC large exporter (indicative) Saudi Arabianot published 2025not verified
LyondellBasell PO/TBA-based MTBE and ETBE (indicative) USnot published 2025not verified

Largest producers: India

CompanyCountryVolumeYearSource
Reliance Industries (Hazira) BPCL, IOCL and Reliance held all 0.211 Mt of Indian capacity in 2017 Indianot published 2017GlobalData via Sweet Crude Reports (2018)
Indian Oil Corporation (Vadodara)Indianot published 2017GlobalData via Sweet Crude Reports (2018)
Bharat Petroleum (Mahul)Indianot published 2017GlobalData via Sweet Crude Reports (2018)
Haldia Petrochemicals (planned) start not verified India0.099 Mt a year 2022 (planned)GlobalData via Sweet Crude Reports (2018)
Nayara Energy, Vadinar (planned) start not verified India0.15 Mt a year 2022 (planned)GlobalData via Sweet Crude Reports (2018)

India's MTBE capacity was 0.211 Mt in 2017, forecast at 0.46 Mt by 2022 (GlobalData). Crisil puts MTBE at 10% of India's methanol demand (FY2026e), about 0.35 Mt of methanol, which implies close to 1 Mt of MTBE if all made locally (derived); current capacity and imports not verified. India's ethanol blending (E20) competes with MTBE for octane.

Position by region

RegionPosition
USBanned as a petrol oxygenate since 2006 (state bans and phase-out); still produced for export: 84% of exports went to Mexico in Jan-Aug 2025.
EUFlat demand; Italy and others shifting to ETBE for biofuel mandates; supply increasingly from the Middle East and China.
IndiaMade in refinery C4 units; E20 ethanol blending reduces octane need from MTBE.
ChinaLargest consumer and producer; overcapacity and weak domestic blending demand push exports.
JapanStopped using MTBE in petrol in 2001 (S&P Global CEH).
Middle EastLarge on-purpose plants export to Europe and Asia.