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
Japan’s MGC, JFE to recycle CO2 to produce methanol
Japan’s MGC, JFE to recycle CO2 to produce methanol
Tokyo, 24 March (Argus) — Japanese methanol supplier Mitsubishi Gas Chemical (MGC) and steel maker JFE Steel have agreed to conduct a pilot project to produce methanol by recycling CO2, including gas derived from JFE's steel production. The project is expected to begin in the 2026 fiscal year, the companies announced on 24 March. MGC has started building a 100 t/yr methanol plant for this project in the Mizushima industrial complex, west Japan. The companies will make methanol using CO2, including gas that comes from JFE's steel production. Petrochemical company Mitsubishi Chemical will then use the methanol to produce propylene, which is a feedstock for plastics production. The new plant will be a mobile facility, as MGC is considering conducting similar methanol production trials in different places in the future. Separately, MGC is also considering launching a green methanol plant after the 2030 fiscal year, which can supply around 1mn t/yr of methanol, the same capacity as a conventional plant. The company expects an increase in global demand for methanol, especially as an alternative fuel for vessels. MGC has over 7.5mn t/yr of global methanol production capacity. The group seeks to reduce CO2 emissions by 39pc in the 2030 fiscal year compared with the 2013 fiscal year levels, and to achieve net zero emissions by the fiscal year 2050. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Phillips 66 weighs Louisiana refinery expansion
Phillips 66 weighs Louisiana refinery expansion
Houston, 20 March (Argus) — US independent refiner Phillips 66 is seeking state tax incentives for a possible expansion of its 264,000 b/d refinery in Lake Charles, Louisiana. The expansion would increase production capacity and improve operational efficiency through upgrades and new specialized equipment, according to a summary of the project posted by the Louisiana Department of Economic Development. The agency, which administers state incentives, said that the Phillips 66 project is in review. Phillips 66 said today that it does not typically comment on refinery operations, regulatory filings or commercial activities. According to the Louisiana Department of Economic Development posting, the $99mn upgrade would include adding a 5MW steam turbine power generator, a boiler feedwater chemical system, LCR kerosene product rundown system upgrades, a reactor, a naptha fractionator, and other pieces of equipment. The budget includes $40mn for machinery and $59mn for labor and engineering. The project is estimated to be completed at the end of 2027. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Upper Mississippi River reopens for transit
Upper Mississippi River reopens for transit
Houston, 20 March (Argus) — The first towboat arrived at St Paul, Minnesota, today, marking the start of the 2025 navigation season on the upper Mississippi River, according to the US Army Corps of Engineers (Corps). The Neil N. Diehl passed through Lock 2 at Hastings, Minnesota, with nine barges, crossing into St Paul on 19 March. Tows reaching St Paul signify the unofficial start of the navigation season, as St Paul is the last port to open on the Mississippi River after winter ice thaws each year. This is considered an average start time for the navigation season, which typically opens the third week of March. The first tow to reach St Paul in 2024 arrived on 17 March. The Corps released the final Lake Pepin ice measurements of 17in on 12 March and was unable to take new measurements this week since the ice had melted significantly. Lake Pepin measurements help determine when the ice will be thin enough for barges to transit up river. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU opens anti-dumping probe into China adipic acid
EU opens anti-dumping probe into China adipic acid
London, 20 March (Argus) — The European Commission has opened an anti-dumping investigation into imports of adipic acid from China. Two European chemical producers, Germany's Lanxess and Italy's Radici Chimica lodged a complaint with the commission claiming distortions in China's chemical market that could result in dumping of product in export markets. Interested parties have until 29 March to request a hearing with regard to the opening of the investigation and until 20 April to comment on the complaint. China shipped 111,800t of adipic acid to the EU in 2024 according to customs data, up by 10.1pc year on year and 60pc higher than the 2019-2023 average exports of 70,000t/yr. German chemicals giant BASF is to end adipic acid production at its Ludwigshafen site this year, it said in August, commenting at the time on the "changed market environment." By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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Chemical Conversations: Methanol Market Puts-and-Takes
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Podcast - 31/01/25Chemical Conversations: Methanol Market Puts-and-Takes
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