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
Chemicals, polymers part of EU tariff consultation
Chemicals, polymers part of EU tariff consultation
London, 8 May (Argus) — Polymer and chemical products are included in a European Commission public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The consultation will remain open until 10 June, after which a final proposal will be made for the adoption of countermeasures and a legal act prepared for imposing them "in case negotiations with the US do not produce a satisfactory result". The list of additional products that could face import tariffs includes many polymers and some chemicals, although appears to target value more than volume. These additions include polypropylene homopolymer and copolymers (HS codes 39021000, 39023000), although these account for a relatively small volume of trade, at 114,000t in 2024, according to GTT data. Other polymer codes on the consultation list include some polystyrene, polyvinyl chloride, acrylonitrile butadiene styrene and polyethylene terephthalate products. Isocyanates and some polyurethanes are part of the consultation. Imports of acetic acid, a methanol derivative were included. EU 27 imports from the US in 2024 were 540,000t. Liquid caustic soda has been included. The EU 27 countries imported 540,000t in 2024. Benzene and xylenes have been included, but only under distinct "non-chemically defined" HS codes (27071000 and 27073000) and for which volumes are small. The European Union on 9 April announced a 90-day delay to a series of planned countermeasures specific to US tariffs on metals to allow space for negotiations. These are separate from the new consultation and remain poised to go ahead if negotiations fail. They included a 25pc tariff on imports from the US of polyethylene under codes representing nearly 1mnt of imports in 2024. By Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
OxyChem maintains demand estimates for 2025
OxyChem maintains demand estimates for 2025
Houston, 8 May (Argus) — US chemical producer OxyChem is maintaining expectations for demand growth in its key sectors this year and remains committed to its profit guidance despite various market challenges. OxyChem during its first quarter earnings call today said its full-year profit guidance is $900mn-$1bn, roughly in line with the $1bn midpoint guidance for 2025 it expected during its 2024 fourth quarter earnings call. The company said the performance of its chemical sector exceeded expectations for the first quarter, although winter weather disrupted production and stoked higher operating costs during the three-month period. Sales revenue totaled $1.19bn in the first quarter, less than 1pc higher than a year earlier. The company expects domestic polyvinyl chloride (PVC) consumption to grow by 4-5pc in 2025 from last year, while higher costs associated with first quarter disruptions were now over. But the company added there is still uncertainty around how demand, costs, and prices will overlap during the months ahead. Challenges to PVC prices persist because of China's increasing dominance in the global market. China's global PVC market share grew from virtually nothing in 2020 to roughly 30pc in 2024 as producers sold overbuilt domestic supply, OxyChem said. China's increased presence in the export market weighed on global PVC export prices, which eventually pressured domestic US contract prices, the company added. OxyChem anticipates caustic soda demand will mirror last year, but recent expansions in the wider industry could pressure prices. OxyChem reported a $185mn profit for the first quarter, 27pc lower than the same quarter a year earlier despite higher sales revenue. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Shell to buy Freepoint pyrolysis oil in US: Update
Shell to buy Freepoint pyrolysis oil in US: Update
Adds Freepoint comment in second paragraph Houston, 8 May (Argus) — Freepoint Eco-Systems has agreed to provide Shell's polymer plant in Pennsylvania with "a steady supply" of pyrolysis oil produced in Hebron, Ohio, from chemically recycled plastic waste. Under the "landmark agreement", oil will be shipped to Shell's polymer plant in Monaca, Pennsylvania, where it will be used to make plastic, the company said. Shell under the deal is entitled to the Hebron plant's production capacity of 130mn lb/yr, Freepoint said Thursday. Freepoint's Hebron plant is still in its commissioning phase, but the company expects to produce up to its full capacity of pyrolysis oil upon completion later this year. Pyrolysis uses high heat to break down waste plastic into feedstocks that can be used to make virgin-like plastic material. Shell said the agreement reflected its commitment to increasing the circularity of plastics in its portfolio. On 22 April, Freepoint sent its first railcar of pyrolysis oil to Shell's plant in Norco, Louisiana. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
PureCycle rPP volumes to follow customer trials
PureCycle rPP volumes to follow customer trials
Houston, 8 May (Argus) — PureCycle will base its production of recycled polypropylene (rPP) at its Ironton, Ohio, location on demand from customer trials, the company said this week during its first quarter earnings call. The company currently holds 14mn lbs of rPP in inventory, and produced 4mn lbs of rPP during the first quarter of 2025. "As customer trials progress and demand comes on the books, we will raise [production] rates in order to meet the demand," said chief executive Dustin Olson. PureCycle currently has 33 active customer trials for its rPP and 55 pending trials. Its material is being trialed under applications that include automotive, consumer packaging, durable housewares, and furniture. The Ironton facility's nameplate capacity is 107mn lbs, which the company is still far away from producing. However, in April, the plant achieved its best monthly feed rate of 12,500 lbs/hr with on-stream time at 87pc. PureCycle reported the company's first ever revenue of $1.6mn in the first quarter. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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