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Chemical Markets Retreat as US-Iran Memorandum Improves Supply Outlook, TPH Energy Says

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Chemical markets gave back some war-driven gains after the US and Iran signed a peace memorandum, with China methanol recording the sharpest weekly decline, TPH Energy strategists said in a Tuesday note.

China methanol prices fell $68 per metric ton to $342/mt as traders anticipated higher exports from Iran and weaker demand from methanol-to-olefins producers, TPH Energy said.

US polyethylene prices dropped 3 cents per pound to 55 cents/lb, extending last week's decline as the market continued to absorb a record May inventory build and softer export demand, according to the report.

US polypropylene prices slipped 4 cents/lb to 59 cents/lb, a steeper decline than the 1 cent/lb drop in propylene, although both polyethylene and polypropylene remained 17 cents/lb above pre-war levels, TPH Energy said.

US methanol held steady at $517/mt, or $183/mt above pre-war levels, while China methanol remained $80/mt above pre-war levels despite pressure from lower Chinese ethylene and polyethylene prices, the report said.

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