US methanol exporters seek to fill war supply gaps

Spanish Market: Petrochemicals
26/03/26

US methanol producers are vying to fill a gap in global methanol supply as the war in the Mideast Gulf has threatened about 17pc of global methanol production capacity as it stretches into its fourth week.

Middle East methanol production is estimated at about 26.49mn metric tonnes (t)/yr, with about 90pc of regional capacity beholden to transit through the strait of Hormuz, Argus estimates. Middle East methanol producers are critical suppliers to China and India importers, and the lack of supply is creating sales opportunities for US producers. The shift in the market is likely to be a topic of discussion as participants gather at the annual American Fuel and Petrochemical Manufacturers International Petrochemical Conference in San Antonio, Texas, next week.

Heightened offshore demand in March has supported an 18pc increase in US methanol barge prices, which are expected to remain supported.

US methanol production is insulated from volatile energy prices and shipping disruptions stemming from ongoing fighting in the Mideast Gulf, positioning domestic producers to fill supply gaps for key global importers. US producers are able to meet domestic and growing global demand after a decade of rapid capacity growth.

Europe is an emerging sales opportunity for US producers following a 49pc jump in spot values since the outbreak of the war, Argus data show. Producers are buying up spot barges this month to piece together export cargoes.

More than 300,000 bl of methanol has traded at the US Gulf coast so far this month, the highest monthly volume in March since 2021, Argus data show. Europe is a major importer of US methanol, with importers in the Netherlands and Belgium comprising nearly half of total US exports in 2025 for a combined 2.25mn metric tonnes, census data compiled by Global Trade Tracker show.

By Steven McGinn

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20/03/26

S Korea starts review of Lotte Chemical, YNCC merger

Singapore, 20 March (Argus) — South Korea's Ministry of Trade, Industry and Resources (Motir) and the Korea Fair Trade Commission have started a preliminary review of Lotte Chemical's proposed merger with Yeochun NCC (YNCC) as part of the country's initiative to restructure the petrochemical segment. Under the proposed plan, Lotte Chemical will spin off part of its petrochemical operation in Yeosu, including its cracker and downstream units, establishing a new entity which will be merged with YNCC. For the downstream sector, the shareholders of YNCC — DL Chemical and Hanwha Solutions — will sell part of their downstream assets to YNCC. After the merger, Lotte Chemical, DL Chemical and Hanwha Solutions will each hold one-third stake in YNCC. The new business will focus on producing high value-added products, including linear density polyethylene (LDPE) and polyolefin elastomer (POE) for medical use, according to a statement released by Motir. This is the second merger review Motir is conducting after South Korea initiated a restructuring plan for its petrochemical industry to slash 2.7–3.7 mn t/yr of ethylene capacity, or up to 25pc of their total cracking capacity on August 2025 . Motir first approved the merger plan between Hyundai Chemical and Lotte Chemical in Daesan in February. Lotte Chemical owns two crackers in South Korea — one in Yeosu with an ethylene capacity of 1.2 mn t/yr, and another in Daesan with ethylene capacity of 1.05 mn t/yr. YNCC operates three crackers in Yeosu — its No.1 cracker can produce up to 900,000t/yr ethylene, while its No. 2 and No. 3 crackers produce 915,000t/yr and 500,000t/yr of ethylene, respectively. YNCC's No. 3 cracker has been idled since August 2025 because of margin concerns. Hanwha Solutions operates a 1.458 mn t/yr ethylene dichloride plant in Yeosu alongside a 330,000t/yr LDPE plant, and a 355,000t/yr linear low-density PE /high-density PE (LLDPE/HDPE) swing plant. Daelim has a 305,000t/yr HDPE unit and a 400,000t/yr LLDPE/HDPE swing plant in Yeosu. The petrochemical industry in Asia has been suffering from negative margins since 2022 because of oversupply from expanding capacities in the region, especially in China. Weak downstream demand has further weighed on production margins, putting pressure on cracker operators since early 2022 . By Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Jones Act waiver may alter PX trade flows

19/03/26

US Jones Act waiver may alter PX trade flows

Houston, 19 March (Argus) — The US' 60-day waiver of domestic shipping requirements under the Jones Act may change the trade flows of paraxylene (PX) and aromatic blendstock in the near-term, sending US Gulf coast production to US Atlantic coast consumers. PX consumers based on the US Atlantic coast (USAC) largely rely on imports from overseas for their needs. Saudi Arabia, South Korea, Brunei, the Netherlands, Taiwan and India were all sources of US PX imports before US-imposed tariffs starting last year shuffled the deck. Saudi Arabia has since become the majority PX trade partner, accounting for over 50pc of flows, according to US Census Bureau data compiled by Global Trade Tracker. But with the US-Iran war bringing vessel movement through the strait of Hormuz to a virtual halt, supplies have tightened for several products, including PX and feedstocks. This has boosted PX prices by $365.65/t since the war began on 28 February to $1,438.73/t on 13 March, according Argus' most recent weekly assessment. PX produced at the US Gulf coast (USGC) is typically consumed within that region, so shipping cargoes to USAC consumers has not been a factor in trade. But the rise of USGC 5211-grade MX since 28 February by 102¢/USG to 389.5¢/USG through 18 March — combined with the 60-day Jones Act waiver — may change that. Market sources tell Argus the higher prices and temporary removal of the higher costs associated with the Jones Act could prompt greater USGC PX production to ship to the Atlantic coast. The waiver could also boost shipments of USGC toluene and MX to the USAC for gasoline blending, another source said, although US blenders tend to prefer alkylate from Europe over reformate or aromatic blendstocks. Alkylate imports are exempt from US tariff policy because of their use in the energy sector. Benzene and styrene shipments will largely be unaffected by the Jones Act waiver because many of those consumers are tied in with refineries, pipelines or receive their volume from inland barges, another source said. By Jake Caldwell and Savanna Millhausen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Vinmar in 15-year offtake deal for Citroniq PP

19/03/26

Vinmar in 15-year offtake deal for Citroniq PP

Houston, 19 March (Argus) — Global polymer trader Vinmar has agreed to buy corn-based polypropylene (PP) from Citroniq's planned Nebraska plant under a binding 15-year offtake agreement. The deal represents half of Citroniq's 600,000 t/yr PP capacity at the plant, which is expected to begin production in 2029, the Houston, Texas-based companies said last week. The project will use a corn-to-ethanol-to-propylene-to-polypropylene process. Growing corn removes carbon from the air, and Citroniq's process sequesters that carbon in PP pellets, making the polymer "carbon negative", according to the company. Vinmar's Premier Product Marketing unit has agreed to distribute the Citroniq resin, to be sold as OrganiqPP, through its global petrochemical logistics network. The long-term commitment reflects rising demand for low-carbon, drop-in polymers that are compatible with existing processing equipment, Citroniq said. The company expects adoption across packaging, consumer goods, automotive and industrial markets. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

LyondellBasell seeks 35¢/lb hike for US PE through May

19/03/26

LyondellBasell seeks 35¢/lb hike for US PE through May

Houston, 19 March (Argus) — LyondellBasell is seeking a total price increase of 35¢/lb for US polyethylene (PE) contracts over the next three months signaling that the company believes higher prices have some staying power. In an 18 March letter, LyondellBasell informed customers that in addition to the 10¢/lb increase it is planning for March contracts, it was revising its earlier 10¢/lb increase for April contracts higher to 15¢/lb and adding another 10¢/lb increase for May contracts. All other producers have announced a 10¢/lb increase for March, which one market participant described as "a slam dunk". Other producers have announced additional increases of between 10-15¢/lb for April. It was not immediately clear whether other producers have also announced May price increases. "If you are a supplier, you want to aim high because you don't want to cap your ability to be able to raise prices when you need to," said a US PE distributor. "Things are going crazy, and they want to make sure they can implement whatever they need." The price hikes stem from global polymer supply disruptions and feedstock disruptions in the Middle East and throughout Asia due to the US-Israel war on Iran, which is creating new demand for resin out of the US. Buyers are growing increasingly concerned about the price increase announcements, fearing that the higher prices may stick for some time. "A big chunk of these increases is probably going to go in," said one US PE buyer. "It is freaking chaos." The increases are making it difficult for buyers to plan because it is hard to gauge at what price demand destruction will take place. "We need to know how to plan," the buyer said. "This doesn't really help for longer-term business." For now, some buyers are trying to purchase extra cars to get ahead of the price increases, but supply is very tight, and there is limited availability. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

California packaging law challenged

19/03/26

California packaging law challenged

Houston, 19 March (Argus) — A coalition of packaging and business groups has sued to block California's "truth in labeling" law, arguing the recyclability label mandate set to take effect in October 2026 will burden companies and distort recycling markets. The groups argue that SB 343, enacted in 2021, could make it more difficult for consumers to correctly identify recyclable packaging and ultimately increase landfill volumes. Clear and consistent labeling is essential for maintaining circularity across grocery, food service and agricultural packaging supply chains, the plaintiffs said. SB 343 prohibits companies from using the chasing arrows recycling symbol or making recyclability claims unless their packaging meets state verified collection and processing criteria. The law is the first at the US state level to bar the chasing arrows symbol on products that do not qualify as recyclable under California's standards. CalRecycle has published a list of materials that meet the criteria, including PET, HDPE/LDPE and PP rigid containers, along with certain multi use products. To qualify, a material must be collected for recycling by at least 60pc of California residents, and recycling facilities must sort it into defined streams representing at least 60pc of statewide programs. Companies will have until early October 2026 to implement any required label or mold changes. The law also ties into SB 54, California's extended producer responsibility (EPR) program for single use packaging. While SB 343 governs recyclability labeling for all products and packaging, SB 54 sets broader 2032 requirements for recyclability and compostability. But SB 54 relies on the definitions established under SB 343, making the labeling law foundational to the EPR program's implementation. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US methanol exporters seek to fill war supply gaps

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