The ongoing MEG trade flow disruptions caused the total Methanol seaborne export volumes to drop significantly this year, as the region is a major exporting location. Year-on-year total Methanol export volumes dropped by around 18%, with the utilisation levels dropping around a similar percentage. MEG is also a major supplier of natural gas/LNG, the major feedstock for Methanol production.
Other Methanol exporting locations could not provide for a shortfall of exporting volumes so far this year. Almost 2/3rd of the total MEG Methanol exporting volumes last year ended in China.
China is the largest Methanol importer, while also having the largest Methanol production capacity, of which the majority is using coal as a feedstock. This production capacity allowed China to absorb the drop in Methanol imports caused by the MEG tradeflow disruptions and higher commodity prices so far this year.
Interestingly, for other importing regions the trade volumes remained at the similar levels as last year, meaning that China mainly ‘absorbed’ the drop in the overall Methanol trade/importing volumes caused by the MEG disruptions.