Methanol prices in Asia escalated three-and -half month higher on tight inventories at ports in key China market, with players largely shrug off a huge capacity that started up in Iran.CFR China methanol prices were evaluated at USD 403/mt. In domestic market methanol import prices plunged from end-July on bearish demand amid the monsoon season, while supply was ample. Presently, Market players remained slightly bullish on methanol prices in Asia as import supply is shortened by plant turnarounds and the reduction in output during winter. Iran, which is a major supplier of methanol to China and India, started up a 1.65m tonne/year methanol plant in Asaluyeh, Bushehr province early this month. But actual methanol exports from Iran will be impeded by US sanctions, the second wave of which will be imposed on 4 November, said by market player.“The India methanol market is much smaller in size compared to China, and would not be able to take in all of the methanol volumes that Chinese buyers would not be able to handle due to the sanctions,” another Indian trader said.
