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
LyondellBasell agrees sale of select assets: Correction
LyondellBasell agrees sale of select assets: Correction
Changes financial figures in third paragraph to € from $ London, 5 June (Argus) — LyondellBasell said it is in exclusive negotiations with Munich-based industrial investment firm Aequita, regarding the sale of four olefin and polyolefin assets in Europe. The deal includes its integrated cracker and polyolefin assets in Berre, France and Muenchmuenster, Germany, and stand-alone polypropylene (PP) sites in Carrington, UK and Tarragona, Spain. The deal is contingent on consultations with local works councils and is expected to close in the first half of 2026. The sites were part of six put under strategic review in May 2024. LyondellBasell's Brindisi PP asset is not part of the deal and its future remains under review. Lyondell Basell confirmed the closure of its Maasvlakte propylene oxide-styrene monomer plant — the final site included in its initial review — in March. The companies said that the package of assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a longstanding customer base and with access and connectivity to key infrastructure". LyondellBasell will contribute €265mn ($303mn) of €275mn total cash funding to support the separated business, but said that the sale would reduce its annual capex by around €110mn, reduce fixed costs by €400mn, and reduce the scope for decarbonisation investments. Decarbonisation of the Berre and Muenchmuenster sites by 42pc of 2020 levels by 2030, as previously committed to by LyondellBasell, would cost hundreds of millions of euros, or more on a faster timescale. Sale of the assets was preferential to closing them, which would incur environmental liabilities, now assumed by Aequita, LyondellBasell said. Aequita is a private equity group focussed on companies in special situations and group carve outs. It has no other chemicals businesses, but other investments include industrial and automotive parts suppliers. Managing partner Christoph Himmel said "Each site brings a strong operational foundation and a highly experienced, committed employee base. We are confident in our ability to accelerate their development". LyondellBasell indicated that it remains committed to Europe, and said the sale will concentrate its European footprint on "economically sustainable sites". Its remaining European assets are centred around two crackers and downstream units in Wesseling, Germany, PP assets in Italy and propylene oxide capacity in France and the Netherlands. Tarragona and Carrington have capacities of 390,000 t/yr and 210,000 t/yr of PP, respectively. Muenchmuenster has capacity of 400,000 t/yr of ethylene, 265,000 t/yr of propylene, 67,000 t/yr of crude C4s and downstream production of 320,000 t/yr of high-density polyethylene (HDPE). Berre has capacity to produce 465,000 t/yr of ethylene, 270,000 t/yr of propylene and 155,000 t/yr of crude C4s. The site at Berre also has downstream capacity for 320,000 t/yr of low-density polyethylene (LDPE), 350,000 t/yr of PP and 80,000 t/yr of butadiene extraction. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Global footwear market to grow in 2025: Industry
Global footwear market to grow in 2025: Industry
London, 5 June (Argus) — Global footwear consumption could increase by 7.6pc on the year in 2025, according to a survey by footwear industry association World Footwear, potentially supporting demand for polyurethane (PU) this year. The increase in global footwear consumption could boost demand for key components in the production of PU for the footwear industry, including monomeric MDI (MMDI), aliphatic polyester polyols and polymeric polyester polyols. Consumption will grow by 14.9pc in Africa, by 7.5pc in Asia, by 3.9pc in North America and by 2pc in Europe, according to the survey, but could decline by 0.5pc in South America and by 3.9pc in Oceania. The geographic divergence "highlights the shifting centre of gravity in the global footwear industry toward emerging markets [...] while established markets face greater challenges," World Footwear said. World Footwear also said that supply chain pressures and higher input costs continue to squeeze profit margins. Survey respondents said that the cost of raw materials was the top concern for the industry. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Europe PU flex foam output falls 2.7pc in 2024
Europe PU flex foam output falls 2.7pc in 2024
London, 4 June (Argus) — European production of flexible slabstock polyurethane (PU) foam fell by 2.7pc to 893,200t in 2024, a smaller drop than expected, according to data released today by industry association Europur. The decline was less steep than Europur's forecast of a 10pc fall. It also marked a slowdown in the rate of contraction seen in previous years — output dropped by 5pc in 2023 and by more than 10pc in 2022. The sector had expanded sharply in 2021 as Covid-19 lockdowns drove consumer spending on household goods such as mattresses and upholstered furniture, key drivers of PU foam demand. European producers have since faced growing competition from neighbouring regions. Eurasian output surged by 17.9pc to 223,200t in 2024, driven largely by Russia, where production is running "flat out", said Clint Raine, co-founder of consultancy Belvedere and Partner, speaking at Europur's annual conference in Spain today. In contrast, output in Poland — Europe's largest producer — fell by 1.2pc to 203,400t. Turkey, which overtook Poland in 2023 as the biggest producer in the wider Europe, Middle East and Africa (EMEA) region, produced slightly more than Poland again last year, although its output declined by 5pc to 203,900t. There are no clear signs of a recovery in European production in 2025, Raine said, citing stagnant demand and rising costs. Most industry participants share that view. A survey of delegates at the Europur conference showed that 49pc expect European output to fall by up to 5pc this year, while 21pc forecast a drop of more than 5pc. About 23pc expect production to remain stable, and just 7pc anticipate growth in 2024. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Europur flags China PU foam threat, backs probe
Europur flags China PU foam threat, backs probe
London, 4 June (Argus) — European polyurethane (PU) foam makers association Europur said today that it would support an antidumping investigation into Chinese imports to Europe, as they threaten producers in the region. Europur's call comes as European PU foam producers are concerned about the impact of rising Chinese imports on their industry's competitiveness. A combination of factors including weaker domestic demand in China and lower freight rates has boosted cheaper Chinese PU imports to Europe in recent months. "We are not against trade […] but trade must be fair," Europur president Bart ten Brink told delegates at the association's annual conference in Spain. "We cannot have a set of rules for all of the European producers and none for [those outside]," he said, adding that Europe is failing to enforce a level playing field. Europur said it has done preparation work to support an antidumping investigation. But major mattress producers would have to press for it at a European level, Brink noted. European Policy Centre Associate Director Georg Riekeles warned delegates against complacency. As European chemical capacity shuts down under pressure from low-cost Chinese competition, the country is strategically well-positioned to fill the supply gap, Riekeles suggested. Europe must strengthen its internal market, he warned. "No amount of subsidies will work, unless you have demand capacity [but] value chain integration in Europe has stalled in the last decade." Chinese PU exports to Europe have risen since the start of this year, driven by weaker domestic demand in China, lower Asia to Europe freight rates and a weaker US dollar, which has made dollar-denominated Chinese volumes more competitive in Europe. Chinese exporters are facing growing challenges in other markets including the US as a result of trade uncertainty and shifting tariff regimes. This has contributed to make stable markets such as Europe more attractive, and trade flows of finished goods — such as mattresses — are shifting from the US to other markets, including Europe. China's April mattress exports were down by 11pc on the year at 2.35mn units. Shipments to the US fell by 45pc to 383,100, while exports towards Europe rose by 27.8pc in April, to 733,000. The drop in mattress shipments from China has contributed to slow Chinese domestic demand for polyether polyols, a key input into PU foam, pushing exports up. China exported 84,800t of polyether polyols to Europe in January-April this year, an increase of 30pc year on year. A further 93,400t were exported towards nearby Turkey in the first four months of the year. Argus assessed flexible slabstock polyether polyols at €1,280-1,370/t del for domestic supply in May. Meanwhile imported polyols from China were at €1,100-1,150/t on a delivered basis in some European markets last month. 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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