Spot methanol prices at Chinese ports have risen to $310–330 per tonne on a CFR China basis, according to infohub.kz.
A week earlier, quotations were in the range of $300–320 per tonne. The increase came amid slower vessel unloading in eastern China due to a typhoon and ongoing issues with transiting the Strait of Hormuz, as reported by inbusiness.kz, citing price agency Argus.
As of Friday, August 14, spot methanol prices at Chinese ports rose at both ends of the price range. The lower end increased from $300 to $310 per tonne, and the upper end from $320 to $330, according to Argus.
The market dynamics were primarily driven by logistical factors. In eastern China, typhoon-related delays in vessel unloading affected the current supply of the product.
An additional factor is the situation around the Strait of Hormuz, through which significant volumes of raw materials and petrochemical products pass.
Meanwhile, some Iranian methanol continues to reach the Chinese market. According to data from analytics platform Kpler and market participants, two vessels carrying approximately 80,000 tonnes of Iranian methanol managed to pass through the strait in late the first ten days of August, the agency noted.
These vessels are expected to arrive in China later in August. Thus, market participants anticipate replenishment of supply after the delivery of already shipped volumes.
Separately, quotations for methanol cargoes not subject to US sanctions changed. Last Friday, they stood at $315–330 per tonne CFR China, compared with $305–320 per tonne on August 7, according to price agency Argus.
Thus, over the week, the lower end of non-sanctioned product quotations rose by $10 per tonne, and the upper end also increased by $10.
The price increase occurs amid ongoing instability in supply logistics. For the Chinese market, the availability of imported methanol, including from Middle Eastern countries, is of particular importance.
Earlier, the situation around the Strait of Hormuz had already led to a significant rise in methanol prices in China. According to experts, reduced import volumes were one of the factors behind the sharp increase in product prices on the Chinese market.
Current quotations reflect the spot market for imported product. Domestic prices in China are also showing increased volatility. According to industry platform ECHEMI, in August, methanol prices showed mixed movements, and on August 14, analysts noted the impact of the geopolitical situation and changes in plant operations on the market.
As of August 20, the methanol price on the Chinese market was about 2,805 yuan per tonne, according to Trading Economics.