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Methanol Prices Dip in China & US as Southeast Asia Holds Ground in Last Week
Methanol Prices Dip in China & US as Southeast Asia Holds Ground in Last Week

Methanol Prices Dip in China & US as Southeast Asia Holds Ground in Last Week

  • 07-May-2025 4:15 PM
  • Journalist: Francis Stokes

Methanol prices saw mixed development across some of the key global markets in the week of May 2, 2025, as regional supply-demand dynamics and wider economic uncertainty played a significant role in pricing direction. Methanol prices in Southeast Asia and Saudi Arabia remained stable, while the prices were down in China and the United States due to slow demand from end-users in those regions, coupled with volatile conditions in commodity markets.

In Southeast Asia, methanol prices remained stable in Singapore and Indonesia, with sentiment moving from bearish to balanced. The take-off for end-users in the region continued to remain weak for methanol, with supply still ample, spot cargoes being offered by regional producers. There was no significant tightening of supply, meaning that the market sentiment was stable-to-weak. Demand-side considerations around ongoing US-China trade pressures and volatile conditions of commodity markets left buyers unsettled, resulting in limited trading activity and muted price movements.

Malaysia's methanol market showed stability despite some key news on the supply side. Petronas Chemicals Marketing, Labuan, began its 55-day turnaround at its 1.7 million mt/year No. 1 methanol plant on Labuan Island on 1st May. However, there was little market price impact in the short term, and the dynamics of supply, particularly spot cargo availability, were sufficient. With weak demand from buyers in the region, the market was largely balanced, and overall sentiment appeared cautious.

In China, methanol prices fell slightly during the same period. The market was quiet, affected by ongoing tit-for-tat tariff exchanges between the U.S. and China, which had an overarching dampening effect on the economic outlook, increasing overall market caution. There were limited fixed-price bids and offers in the dollar-based market, further indicating a lack of trading activity.

In the Middle East, prices held steady in Saudi Arabia amid balanced domestic production and enough inventory. While downstream demand was lackluster, conditions for supply stability and no disruptions were positive for prices. Low methanol prices in Europe could eventually pressure trade flow, as Middle Eastern cargoes seek better margins in Southeast Asia.

In the U.S., methanol prices fell 1% amid moderate demand and a wait-and-see attitude for buying. The net economic outlook will continue to affect direction in the market as uncertainty persists globally. Methanex's recent restart, at the end of April, of its No. 3 methanol plant in Louisiana (1.8 million mt/year) after a two-month idling added another level of supply-side pressure that could lead to continued price declines in the coming weeks.

Overall, all market players across the world were in cautious mode, with sentiment dampened as a result of the uncertain economic outlook and volatile trading conditions.

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