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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid ongoing pressures on the global chemicals sector, Methanex has idled its methanol plant in Trinidad and Tobago, which has an annual production capacity of 860,000 tonnes. The company did not give a specific reason, but the move comes amid a global oversupply of methanol and shrinking margins for producers.
The global methanol market is facing a glut due to increased capacity in China and the Middle East, putting pressure on prices and margins. The idling of the Trinidad plant is the latest sign of a tough operating environment for producers in the Caribbean and Latin America, where output volumes have declined in recent months.
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Sign InMethanex has not disclosed a timeline for a potential restart of the idled plant, leaving uncertainty in place. Investors will watch the company's upcoming earnings for further details on its strategy to adapt to current market conditions, especially as industrial demand indicators remain weak globally.