China's methanol imports from Iran in June are expected to be flat or lower from May as sanctions against the major supplier tighten, market sources said Monday.
China imported 161,961 mt of methanol from Iran in May, down 40.9% from April.
"The problem with shipments -- the insurance -- kicked in last month. So June should be around the same level," said a source based in China.
From May 1, European Union-based insurers were not allowed to provide cover for Iranian petrochemical shipments to non-EU countries. This has dealt a blow to the logistics of delivering methanol for Iranian sellers.
But some expect China's June methanol imports from Iran to be around 80,000-90,000 mt, down almost 50% from May.
"There are not enough vessels [that can call on Iran to lift cargoes for China]," said a major trader based in China.
An Asia trader agreed, "based on what we saw physically load."
Market sources pointed out that there had been a rise in CFR China sell tenders issued by Iran producers, although there has been limited interest due to weak demand in China.
