Global methanol prices experienced a variation in price action in the week ending July 11, 2025, with the Asia and Europe markets clearly softer while Americas and Middle East sentiment remained stable. The volatile conditions in these markets resulted from increased regional inventories, tempered downstream demand, and persistent geopolitical sensitivities in some of the major exporting markets.
Methanol prices fell within various markets in Asia, as supplies became more plentiful and buying interest was limited. In India, prices fell 3.1% as demand was weak from downstream consumers, and new supply coming from Iran and Southeast Asia boosted available inventories. Most participants continued to show a preference for long-term contracts, with little interest in spot buying. In contrast, prices in China and South Korea remained stable. In China, balanced contract fulfillment levels and stable methanol-to-olefin production levels maintained price stability; similarly, in South Korea, no new developments in demand or supply created a neutral pricing environment.
The Southeast Asian markets show a wider regional downturn. In Malaysia and Indonesia, methanol prices fell 3.4% and 3.1%, respectively. Improved supply conditions and low spot activity pressured sellers to reduce offers as prices fell sharply. The lack of downstream demand coming from the formaldehyde and MTBE end-use sectors kept buyers muted and unwilling to commit. Singapore, on the other hand, held steady as buyers were fully contracted and purchased moderately downstream, ensuring stable purchasing conditions. In Australia, methanol prices fell 2.3%, again echoing the broader regional softness.
European methanol prices fell sharply as excess supply and weak demand in the spot market negatively impacted prices in Europe. The Netherlands and Germany saw declines of 4.5% while France had a 4.2% drop. European ports saw a steady supply of low-priced methanol cargo from the U.S. and the Middle East, despite being at demand levels far below supply. Downstream markets, including construction chemicals, formaldehyde, and resins, were unable to support higher prices, being that most buyers only tolerated purchase obligations at their respective contracts. With macroeconomic indicators reflecting stagnant industrial activity, sellers in the region were faced with price competition and little interest in restocking.
By contrast, the U.S. and Brazil appear to have stable methanol prices. The U.S. had a quiet market from limited trading during commenting on the Independence Day holiday, though domestic availability was ample despite reduced outputs from Latin America. In Brazil, methanol price changes were also nonexistent as imports were steady and downstream consumption from formaldehyde and fuel blending continued unchanged.
Saudi Arabia held contract prices flat during the week, with methanol production operating steadily. While MTBE output was slightly constrained due to seasonal crude oil diversion for power generation, methanol demand and supply remained balanced, preserving price stability.
