Iranian methanol exports to China could come under US scrutiny after Washington warned of secondary sanctions on Iranian oil and petrochemicals buyers while nuclear talks continue, Bloomberg reported on Tuesday.
About 40% of China’s methanol imports — some 5.2 million tons in 2024 — came from Iran, data from shipping analytics firm Kpler shows.
Methanol, used to produce plastics, is a key feedstock for China’s methanol-to-olefin (MTO) plants, which are major buyers of Iranian cargoes, according to ICIS, a global market intelligence firm.
"Iranian methanol is almost the only efficient way for coastal MTO units to get enough supply," said Ann Sun, senior analyst at ICIS.
US President Donald Trump last week said countries or firms that buy Iranian oil or petrochemicals could face immediate sanctions. The US has already targeted Iranian energy exports and Chinese refineries allegedly involved in such trade.
Although some Iranian methanol reaches China via third countries like the UAE or Oman, further sanctions could disrupt flows.
The latest move by Trump comes as he is squeezing Iran amid ongoing indirect nuclear talks between the US and Iran. They have now passed the third stage and are awaiting the fourth round in Oman.
Iran says that lifting sanctions is a priority in the nuclear talks.
