HS Code:
Methyl tertiary-butyl ether (MTBE) is an organic compound with the chemical formula (CH3)3COCH3. It falls under HS Code 2909.19.00 (Ether-alcohols and their halogenated, sulfonated, nitrated or nitrosated derivatives). MTBE is primarily used as a fuel additive in gasoline to increase octane levels and reduce engine knocking. It was widely adopted as a replacement for lead in gasoline but has faced scrutiny due to environmental concerns, particularly groundwater contamination. Its global trade is influenced by regional regulations, environmental policies, and the availability of alternative fuel additives like ethanol.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$800 million USD
32% of total trade of total trade
Decreasing
$600 million USD
24% of total trade of total trade
Increasing
$400 million USD
16% of total trade of total trade
Stable
$300 million USD
12% of total trade of total trade
Stable
$200 million USD
8% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Singapore FTA)
Declining demand in North America and Europe
Due to environmental regulations and bans on MTBE use in gasoline, demand has shifted to alternatives like ethanol, reducing trade volumes in these regions.
2020-2022
Rising demand in Middle East and Asia-Pacific
Countries with less stringent environmental policies or growing refining capacities, such as Saudi Arabia and India, are increasing MTBE production and exports.
2021-2023
Shift to bio-based fuel additives
Global push for sustainable energy solutions is impacting MTBE trade, with investments in bio-ethanol and other greener alternatives gaining traction.
2022-2023
The European Union has introduced stricter guidelines on MTBE imports and usage, citing groundwater contamination risks, effectively reducing trade flows into the region.
March 2023
European importers are seeking alternative additives, potentially benefiting ethanol exporters.
Saudi Arabia announced a major expansion of its MTBE production capacity as part of its Vision 2030 plan to diversify petrochemical exports.
July 2022
Increased supply from Saudi Arabia is expected to lower global MTBE prices and shift trade patterns toward Asia-Pacific markets.
Several US states, including California and New York, have reinforced bans on MTBE in gasoline, further reducing domestic demand and export potential.
January 2023
US exporters are redirecting shipments to markets with higher demand, such as Latin America and parts of Asia.