11:06 AM EDT, 05/27/2025 (MT Newswires) -- Methanex ( MEOH ) has kept its Buy rating at TPH Energy Research, according to a note published Tuesday.

TPH noted Methanex ( MEOH ) rolled over its China methanol contracts at US$350 per tonne for June. The China contract rollover comes after a US$50/tonne month over month decrease in May and four previous straight months at US$400, which was the highest price since July 2022.

For the second quarter, this puts China down 8%, which is slightly better than the spot market trend so far this quarter, which is down 13%, TPH said. China methanol spot prices are down 3% month over month in May so far, it added.

TPH said it is still waiting on the NAM and Asia Pacific contracts for June, which is expected to be down given the spot market trends. In May so far, US methanol spot prices are down 9% while Southeast Asia spot prices are down 4%, "which is a bit worse than what we are seeing in China".

On a quarterly basis, US spot prices are down 20% while Southeast Asia has "fared better", TPH said. Overall, the current methanol price environment has continued to exhibit weakness, although TPH forecast strong free cash generation for Methanex ( MEOH ) at these prices.

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