Iran conflict impacts supply, Southeast Asia methanol prices see largest increase since 2007

Golden Ten Data, March 10 – As the war in Iran continues, the price of methanol, which is essential for biofuel production in Southeast Asia, is soaring sharply. This may suppress crop-based output and exacerbate the region's energy tensions. Indonesia is the world's largest producer of palm oil, most of which is converted into biodiesel to meet the country's strict blending targets. Methanol is crucial in this process. However, due to US and Israeli attacks on Iran, shipping has come to a near standstill, disrupting the transport of key commodities and driving up methanol prices. Last week, QatarEnergy announced that it would halt the production of downstream products, including methanol, after the closure of its large liquefied natural gas plant. According to informed sources, if this disruption continues, Indonesia's inventories may decline, and biofuel production may fail to meet the government's monthly quota as early as April.