Iran war scrambles methanol trade routes
In China, Sina Finance reported that escalating Middle East conflict following U.S. and Israeli airstrikes on Iranian targets on Feb. 28 and Iran’s subsequent move to block the Strait of Hormuz have disrupted global methanol shipping routes, tightening supply chains that carry a large share of the world’s seaborne methanol trade.
The strait carries about 35% of global seaborne methanol trade and serves as the primary export route for Iranian shipments. China, the world’s largest methanol consumer, depends heavily on those flows. In 2025 it imported about 8.7 million tons of methanol from Iran, roughly 60% of China’s total methanol imports.
Much of Iran’s methanol production is concentrated along the Persian Gulf, particularly in the Assaluyeh industrial zone, which relies on natural gas from the South Pars field. The export-oriented plants ship most of their cargoes through the Strait of Hormuz to global buyers.
As reported, Chinese companies are responding by accelerating coal-to-methanol production and expanding domestic supply from producers such as Baofeng Energy and Yankuang Energy. Companies are also seeking alternative imports from Russia, Central Asia and other exporters as part of a broader effort to reduce reliance on Middle Eastern methanol.
Category: Sustainable Marine Fuels
