US becomes Brazil’s top methanol source amid production issues in Trinidad, Argentina, Chile

The US has surpassed Trinidad and Tobago as Brazil's main methanol supplier in 2026, gaining ample market share in the largest regional import market as the Caribbean country and other significant players, such as Argentina and Chile, faced production issues throughout the year.

Brazil's total methanol imports during the January-September 2026 period dropped by 16.5% year over year to 1,066,575 metric tons, according to data from the country's Ministry of Development, Industry, Trade and Services, or MDIC.

Methanol cargoes from the US totaled 471,162 mt, representing 219% annual growth and accounting for 44.2% of Brazil's total imports. During the reported period, shipments from Trinidad and Tobago fell 56% year over year to 234,841 mt, according to the data.

Total US exports to Brazil from Jan-Aug 2026 reached 465,795 mt, a 188% year-over-year increase, according to the latest data released by the US International Trade Commission.

Production issues

The rise of the US as the main methanol supplier to Brazil in 2026 coincided with sustained production issues among other exporters, particularly Trinidad and Tobago, which had historically been the primary source of methanol for Brazilian consumers.

Canada's Methanex Corp., the largest global methanol producer, said in June that it would idle its 860,000 m/year Titan methanol plant in Trinidad and Tobago indefinitely.

The company had been "unable" to finalize a new natural gas contract for the Titan plant and would begin indefinitely idling the facility as a result. The decision was attributed to "structurally tight gas supply and demand balances" in Trinidad and Tobago, which made operations commercially unviable, according to a statement.

In Chile, the restart of methanol production at Methanex's facility in Cabo Negro has been postponed, a source familiar with company operations said in early September, with the plant resuming production Oct. 1, according to the same source.

YPF Sociedad Anónima, an Argentine methanol producer, also scheduled an extended turnaround at its 400,000 mt/y plant in Mendoza province starting in June, further tightening supply in Latin America through Q2 and Q3.

Platts, part of S&P Global Energy, assessed spot October methanol at 163 cents/gallon FOB USG Oct. 15, up 2 cents day over day, reaching a five-month high.