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
Major NOLA terminals closed for winter storm
Major NOLA terminals closed for winter storm
Houston, 21 January (Argus) — The port of New Orleans remains closed on Tuesday afternoon due to US Gulf coast snow storms, causing terminals to shut or declare force majeures. Port officials cut off water supplies to port facilities beginning 19 January because of freezing temperatures, significant snowfall and high winds forecast by the National Weather Service (NWS). Operations are expected to be down at least for the rest of today. Host's United Bulk Terminal location at Nola declared force majeure on 20 January because of an expected 3-6 inches of snowfall. The port of Lake Charles in Louisiana also closed on 20 January and the Sabine-Neches Waterway on the Texas-Louisiana border was closed on 21 January. Associated Terminals at Nola closed its doors early on 21 January due to the storm. The company said vessels will be discharged once weather conditions improve and personnel are able to return to the site, but did not give a specific date. Major barge line ARTco, the transportation arm of ADM, shut down operations as well and is anticipated to return to 22 January if weather permits. CGB Barge has also halted operations in New Orleans and is waiting for conditions to improve before resuming work. Arctic conditions are anticipated at the port through Thursday, according to the NWS. Travel will be hazardous due to the snow, ice and wind chill of up to 20mph. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US housing permits drop in Dec, PVC demand stagnant
US housing permits drop in Dec, PVC demand stagnant
Houston, 17 January (Argus) — A decline in US housing permits in December signaled continued constrains on new construction to start 2025, even as single-family starts rose. Suspension-grade polyvinyl chloride (PVC) contracts in the US were flat for December with Argus assessing the price at 57.5¢/lb. Discussions for January point to a possible rollover as well, even as feedstock ethylene prices rise, because demand is still soft at the start of the new year. Privately-owned US housing permits declined to a seasonally-adjusted annual rate of 1.483mn units in December, down 0.7pc from November and 3.1pc off from December 2023 according to the US Census Bureau and the Department for Housing and Urban Development (HUD). Single-family permits were at a rate of 992,000 units in December, up 1.6pc from November but still 2.5pc lower from a year earlier. New starts were at a seasonally-adjusted annual rate of 1.499mn units, a 15.8pc increase from November but still 4.4pc below December 2023. The jump was attributable to a 59pc surge in multi-family home starts, which tend to be more volatile month-to-month. Single-family starts grew to a rate of 1.05mn units, up 3.3pc from November but still 2.6pc lower from the year before. Total permits never grew for two consecutive months or longer over the course of 2024, in large part due to volatility in multi-family construction. Single-family permits did grow each month since September, but each month remained below the prior year's rate from June onward. Both the inconsistent growth in overall permits as well as lagging year-over-year improvement in single-family permits have contributed to PVC buyers in the US market expecting stable but soft demand for the first half of 2025. Builder confidence rose by 1 point in January to 47, according to the National Association of Home Builder (NAHB)/Wells Fargo Housing Market Index (HMI). Builders hope the new year will bring a better economic and regulatory environment. But concerns remain that building material tariffs and costs, as well as a larger government deficit could put upward pressure on inflation and mortgage rates. Any number below 50 still indicates a bearish sentiment. The modest expectations from housing market participants come as 30-year mortgage rates rose above 7pc last week, as the Federal Reserve scaled back its expected interest rate cuts for 2025 to two in mid-December from four quarter point cuts penciled in in September. Both developments add further pressure to the housing market by raising the cost to buy homes as well as to build them. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Braskem to invest $100mn in PE, PVC expansion
Braskem to invest $100mn in PE, PVC expansion
Sao Paulo, 17 January (Argus) — Brazilian petrochemical firm Braskem will invest R614mn ($100mn) to expand its current domestic production capacity by around 139,000t in the states of Bahia, Rio Grande do Sul, and Alagoas. The investment will cover seven projects related to polyethylene (PE), polyvinyl chloride (PVC) and other chemical products, the company said today. The expansion projects will create over 2,200 jobs in Brazil and help to better meet the domestic market's polymer and chemicals demand through domestic production. Braskem's PE production capacity in Brazil is 3.2mn metric tons (t)/y. PVC output capacity is 710,000t/y in Brazil at its units in Bahia and Alagoas. Fellow chemical producers Innova, OCQ and Unipar Carbocloro are also expected to announce investments today at a Brazilian chemical industry event at the Triunfo petrochemical hub in southern Brazil. The investments are in response to a special tax regimen (REIQ) that reduces the PIS/COFINS taxes for the chemical and petrochemical industries and establishes benefits for companies that expand their installed capacity and/or install new plants. Among the products covered by the new tax regimen are all polymers and their upstream inputs, such as naphtha, ethane, and propane. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Poland's Azoty nears sale of PDH/PP plant to Orlen
Poland's Azoty nears sale of PDH/PP plant to Orlen
London, 17 January (Argus) — Poland's chemical conglomerate Grupa Azoty is nearing a sale of its 437,000 t/yr propane dehydrogenation (PDH) and 429,000 t/yr polypropylene (PP) plant to compatriot oil company Orlen. Azoty and Orlen have been discussing potential partnerships over the PDH/PP plant, in Police, since September 2024 . Those talks "clearly confirm" the aim of the negotiations would be to sell the entire plant, or at least a stake in it, to Orlen, Azoty said. The companies agreed to negotiate a potential transaction by 31 March, although the deadline can be extended if required. Azoty is intensifying efforts to divest assets as it tries to turn around loss-making operations and offload more than 9bn zlotys ($2.17bn) in debt that is predominantly loans taken out to build the PDH/PP plant. In November Azoty said the PDH/PP plant is gradually ramping up production , but that it needs time to stabilise output and reach capacity to ensure economic feasibility. By Tomasz Stepien Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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