# MTBE: Production

China's overcapacity and the US export pivot

Source page: https://www.materialinsights.org/chemicals/mtbe/production/

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.

| Measure | Figure | Detail | Source |
|---|---|---|---|
| **World capacity** | not published in sources reached; China has overcapacity (S&P Global, 2025) |  | S&P Global (H1 2026 trends) |
| **World output** | about 30-33 Mt (2024, derived) |  | Energy Aspects (2026), derived |
| **Capacity utilisation** | not published | Many Chinese plants ran at low margins or losses in 2025 (S&P Global). | S&P Global (H1 2026 trends) |
| **Concentration** | Asia more than half of demand; China more than half of Asia | Top-3 company shares not published. | Energy Aspects (2026) |
| **New capacity** | at least 1.26 Mt of new Chinese capacity in 2026 | Zhenhua 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

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Sinopec** total capacity not verified | China | 0.6 Mt new capacity planned at Zhongyuan Petrochemical | 2026 | [S&P Global (H1 2026 trends)](https://www.spglobal.com/energy/en/news-research/special-reports/chemicals/chemical-trends-h1-2026/trade-flow/mtbe-toluene-mx) |
| **Zhenhua Petrochemical** | China | 0.66 Mt new plant planned | 2026 | [S&P Global (H1 2026 trends)](https://www.spglobal.com/energy/en/news-research/special-reports/chemicals/chemical-trends-h1-2026/trade-flow/mtbe-toluene-mx) |
| **SABIC** large exporter (indicative) | Saudi Arabia | not published | 2025 | not verified |
| **LyondellBasell** PO/TBA-based MTBE and ETBE (indicative) | US | not published | 2025 | not verified |

#### Largest producers: India

| Company | Country | Volume | Year | Source |
|---|---|---|---|---|
| **Reliance Industries (Hazira)** BPCL, IOCL and Reliance held all 0.211 Mt of Indian capacity in 2017 | India | not published | 2017 | [GlobalData via Sweet Crude Reports (2018)](https://sweetcrudereports.com/total-mtbe-capacity-to-grow-16-8-in-india-over-four-years) |
| **Indian Oil Corporation (Vadodara)** | India | not published | 2017 | [GlobalData via Sweet Crude Reports (2018)](https://sweetcrudereports.com/total-mtbe-capacity-to-grow-16-8-in-india-over-four-years) |
| **Bharat Petroleum (Mahul)** | India | not published | 2017 | [GlobalData via Sweet Crude Reports (2018)](https://sweetcrudereports.com/total-mtbe-capacity-to-grow-16-8-in-india-over-four-years) |
| **Haldia Petrochemicals (planned)** start not verified | India | 0.099 Mt a year | 2022 (planned) | [GlobalData via Sweet Crude Reports (2018)](https://sweetcrudereports.com/total-mtbe-capacity-to-grow-16-8-in-india-over-four-years) |
| **Nayara Energy, Vadinar (planned)** start not verified | India | 0.15 Mt a year | 2022 (planned) | [GlobalData via Sweet Crude Reports (2018)](https://sweetcrudereports.com/total-mtbe-capacity-to-grow-16-8-in-india-over-four-years) |

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

| Region | Position |
|---|---|
| **US** | Banned 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. |
| **EU** | Flat demand; Italy and others shifting to ETBE for biofuel mandates; supply increasingly from the Middle East and China. |
| **India** | Made in refinery C4 units; E20 ethanol blending reduces octane need from MTBE. |
| **China** | Largest consumer and producer; overcapacity and weak domestic blending demand push exports. |
| **Japan** | Stopped using MTBE in petrol in 2001 (S&P Global CEH). |
| **Middle East** | Large on-purpose plants export to Europe and Asia. |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/mtbe/index.md)
- [Overview](https://www.materialinsights.org/chemicals/mtbe/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/mtbe/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/mtbe/routes/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/mtbe/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/mtbe/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/mtbe/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/mtbe/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/mtbe/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/mtbe/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/mtbe/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/mtbe/links/index.md)