Methanol
Overview
The global methanol industry has suffered in recent years. First COVID-19, then the Russia-Ukraine conflict, followed by global inflation, stagnation and downward revised GDP forecasts. It is hoped 2022/2023 will be the performance valley for the sector, looking toward an improved—but still slowed—outlook. The huge China methanol appetite has slowed. The MTO sector sees minimal growth ahead. The rest of the world will have to generate increased demand, but with much of this sector tied to GDP performance, the outlook here too is reserved. New capacity continues to define the landscape, with several new units expected in the coming months.
Pricing is spiking in Q4’23 due to a myriad of methanol production outages around the world. Production will return and prices weaken some. However, the outlook is for the olefins and olefin derivative sectors to finally end their respective down cycles. Olefin/derivative prices are expected to improve, driving higher MTO methanol affordability values. The rest of the methanol industry is expected to follow China’s MTO methanol price strength.
Argus’ experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest methanol news
United Resins buys 50pc stake in Brazil’s Florpinus
United Resins buys 50pc stake in Brazil’s Florpinus
London, 24 March (Argus) — Portuguese pine chemical derivatives producer United Resins has acquired 50pc of the share capital of Brazil's Florpinus Industria Quimica, the latter company said. The acquisition adds 35,000 metric tonnes (t)/yr of pine oleoresin and 30,000 t/yr of gum rosin processing capacity, as well as 18,000 t/yr of gum rosin derivatives capacity, according to Florpinus' website. The Florpinus group includes Florpinus Industria Quimica, which operates its pine chemical facilities, and Resisul Agroflorestal, which manages 1,989.20 hectares of forests. "This transaction represents a significant strategic step in strengthening the group's value chain," the company said. The deal gives United Resins access to "critical raw materials" such as pine oleoresin and gum rosin. Brazil is a leading supplier of elliottii gum rosin and Portugal's largest provider of the material. Citing synergies between the two companies, Florpinus said the transaction enables vertical integration of their combined elliotti gum rosin and tall oil rosin (TOR) portfolio, increases capacity to develop new value-added products and expands their presence in Europe, Latin America and North America. TOR is a fraction obtained from crude tall oil refining. TOR and gum rosin are interchangeable in several applications, but their production processes differ. Both gum rosin and TOR are used as feedstocks for gum rosin derivatives used in adhesives, road marking and food and beverage applications. Florpinus' main facility and headquarters are in Campo Largo, Parana state. It also operates a facility in Itapeva, Sao Paulo state. As part of the deal, United Resins' co-founder and chief executive officer Antonio Mendes Ferreira will be named as a member of the Florpinus board of directors, the company added. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
S Korea starts review of Lotte Chemical, YNCC merger
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
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
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.
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