Iran-Israel War Ignites Methanol Chemical Market

Iran-Israel War Ignites Methanol Chemical Market

As military conflict escalates between Israel and Iran, the Strait of Hormuz—the world's most critical energy transportation artery guarding global energy supplies—has effectively closed, sending international oil prices to their largest single-day gain in nearly six years and triggering a sharp surge in chemical raw material prices.

The methanol market has borne the most direct impact. Current methanol port prices have surged by 300 RMB to over 2,700 RMB per ton.

On March 2, the domestic methanol futures contract hit the daily limit up, closing at 2,365 RMB per ton. The conflict affects the methanol market through three primary channels:

First, supply contraction. Iran is the world's second-largest methanol producer, with an annual output of 9-10 million tons, making it one of the largest methanol exporters globally. Iranian facilities face increased probability of reduced operating rates or shutdowns due to natural gas shortages and security risks.

Second, logistical disruption. Restricted shipping through the Strait of Hormuz impacts China's import.

Third, rising costs. Crude oil price increases drive up costs throughout the entire industrial chain.

Given the current situation, customers with methanol procurement needs must make advance purchasing plans to avoid increased production costs and potential disruptions to production schedules.