US Gulf Coast Methanol Prices Decline 4.85% as Middle East Import Outlook Improves

US methanol prices declined *.*** during the week of July *, ****, as the signing of the US-Iran peace memorandum and the anticipated progressive reopening of the Strait of Hormuz removed a critical geopolitical risk premium that had supported elevated USGC methanol pricing throughout the conflict period, prompting buyers to defer procurement and sellers to reduce offer levels in anticipation of improved global supply availability.

The primary driver behind the week&#**;s price decline was the fundamental reassessment of the global methanol supply outlook triggered by the peace agreement. Around a third of global seaborne methanol trade passes through the Strait of Hormuz, and the near-closure of the strait had significantly curtailed Iranian supply flows — a particularly acute disruption given Iran&#**;s status as the world&#**;s second-largest methanol producer. Methanol prices in North America during the conflict period were largely sustained on account of reduced...