For the Quarter Ending June 2025
North America
• In the USA, the methanol Price Index declined by 21.4% quarter-over-quarter, the sharpest drop among all regions.
• The methanol demand outlook was tepid, with derivative markets (formaldehyde, acetic acid, coatings) showing no strong recovery.
• The methanol production cost trend remained stable despite an 8.3% rise in natural gas feedstock prices in early June, as producers relied on stored gas.
• High inventory levels and limited export demand pressured producers to lower prices in earlier months.
• Operational consistency at major plants like Methanex Geismar, OCI Beaumont, and Natgasoline ensured robust supply throughout the quarter.
• The methanol price forecast remains range-bound in the short term due to ample supply and muted downstream consumption.
Why Did the Price of Methanol Change in July 2025 in the U.S.?
• In July 2025, the Methanol Price Index in the U.S. decreased, reflecting improved rail and barge availability and easing natural gas prices.
• Downstream demand saw a modest dip, particularly in fuel blending, due to lower gasoline blending activity after peak summer production.
• High inventory, especially in the Midwest, led buyers to adopt cautious procurement strategies.
• With better logistics and fewer supply bottlenecks, producers reduced spot offers to stay competitive.
Europe
• In the Netherlands, the methanol Price Index declined 19.2% quarter-over-quarter, reflecting persistent bearish market conditions.
• Early in Q2, the market was oversupplied, with high inventories and weak consumption across automotive, coatings, and construction sectors.
• The methanol production cost trend rose in June, as a 5.4% spike in natural gas prices inflated manufacturing costs.
• Production across Northwest Europe was consistent, though operating rates varied depending on natural gas affordability.
• Demand from formaldehyde resins, biodiesel, and acetic acid sectors was mixed but did not exhibit sharp volatility.
• Seasonal construction activity in central and eastern Europe modestly lifted methanol demand from wood panel resins.
• Imports from Russia and the Middle East remained strong, while spot activity was rangebound due to predictable offtake patterns.
Why Did the Price of Methanol Change in July 2025 in Europe?
• In July 2025, methanol prices in Europe were largely stable, as long-term contract deliveries dominated the market.
• Soft downstream activity in certain European countries, coupled with high terminal stocks, kept spot prices in check.
• However, a few producers offered slight discounts to encourage offtake ahead of expected maintenance in late Q3.
APAC
• The methanol Price Index in Indonesia fell by 5.2% quarter-over-quarter, reflecting a sustained bearish trend.
• The methanol demand remained soft as key downstream sectors such as formaldehyde and fuel blending operated at reduced rates.
• Oversupply conditions persisted as Iranian and Middle Eastern imports flowed steadily into the region.
• The methanol production cost trend stayed relatively stable despite geopolitical tensions and maintenance at Kaltim Methanol Industri, which had minimal impact on broader pricing.
• The Chinese methanol market remained under pressure due to subdued downstream activity, particularly in olefins and formaldehyde.
• Bearish sentiment persisted due to stable imports, cautious procurement behavior, and low global confidence stemming from US-China trade tensions.
• High feedstock availability, currency appreciation, and consistent production volumes added pressure on the market, weakening the methanol Price Index.
• Overall, the market exhibited a wait-and-see approach, as buyers hesitated to build inventories amid weak demand sentiment.
Why Did the Price of Methanol Change in July 2025 in APAC?
• Methanol prices in July 2025 in Asia-Pacific remained flat to slightly lower, especially in China, due to continued downstream weakness in MTO units and formaldehyde.
• Buyers in India and Southeast Asia delayed bulk purchases, anticipating further price corrections amid an oversupply situation.
• Ample availability from Middle Eastern suppliers kept spot prices under pressure, especially in CFR India and CFR Southeast Asia markets.
South America
• The Methanol Price Index in Brazil fell by 10.2% quarter-over-quarter in Q2 2025, indicating a prolonged bearish trend.
• Import volumes from Chile, Trinidad & Tobago, and the U.S. remained consistent; however, stable supply amid muted demand from formaldehyde, biodiesel, and fuel blending sectors created pricing challenges.
• The Methanol Demand Outlook for Brazil remained cautious throughout the quarter, with buyers exhibiting a wait-and-see approach due to economic uncertainties and restrained industrial consumption.
• A temporary uptick in May, driven by tighter imports and increased biodiesel blending mandates, was short-lived and offset by consistent bearishness in other weeks.
• Despite occasional port bottlenecks and rainfall disruptions in Paraná, logistics normalized quickly and did not result in major price support.
Why Did the Price of Methanol Change in July 2025 in Brazil?
• Methanol prices in Brazil continued to fall in July 2025, driven by sluggish demand and elevated inventories.
• Despite Brazil's peak soybean harvest season, which usually supports methanol demand for biodiesel, forward purchasing in earlier months had already covered most blending needs.
• High inventory levels at key ports like Santos led to reduced urgency among buyers, dampening fresh procurement.
Middle East & Africa (MEA)
• The Methanol Price Index in Saudi Arabia declined by 4.9% quarter-over-quarter in Q2 2025, reflecting weak global sentiment.
• The Methanol Production Cost Trend remained steady, backed by uninterrupted feedstock availability from methane-rich gas fields (Ghawar, Karan, Wasit).
• Supply was strong throughout the quarter, with top producers like SABIC (Ar-Razi), Sipchem, Chemanol, and Tasnee maintaining above 90% utilization rates.
• The Methanol Demand Outlook in Saudi Arabia was neutral, as local downstream sectors such as formaldehyde, MTBE, and methanol-to-olefins (MTO) ran at consistent levels but failed to deliver growth momentum.
• Export demand to China, Japan, and India remained stable due to term contracts, but did not induce upward pressure on FOB prices.
• Drone-related risks in the Red Sea marginally affected freight sentiment, yet export logistics from Jubail and Yanbu operated smoothly with no backlog.
Why Did the Price of Methanol Change in July 2025 in Saudi Arabia?
• Methanol prices in Saudi Arabia declined in July 2025 due to muted downstream demand and sustained high operating rates among key producers such as SABIC-Ar-Razi, Sipchem, Chemanol, and Tasnee.
• Domestic consumption remained stagnant, with no new downstream capacity additions or major procurement from formaldehyde and MTBE manufacturers during the month.
• Export sentiment softened as buying interest from key markets like China and India remained weak amid currency depreciation and inventory overhangs in Asia.
• Stable feedstock prices and absence of any supply-side disruptions further removed any upward support from cost pressures.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the U.S. methanol market experienced a modest overall decline of 1.14%, shaped by evolving supply-demand dynamics and macroeconomic influences. The quarter began with relative stability as demand from downstream sectors like paints, coatings, and MTBE remained consistent, supported by sufficient inventories and steady supply conditions. However, a surge in natural gas prices due to severe winter forecasts temporarily influenced market sentiment.
As the quarter progressed, subdued demand from key segments such as formaldehyde, acetic acid, and construction led to a gradual weakening in market fundamentals. February marked a noticeable shift, with reduced feedstock costs and weak downstream activity placing pressure on suppliers. Despite restocking efforts in early March and a brief pickup in orders, the market remained under strain due to rising domestic output and waning economic optimism.
By the end of Q1, the methanol pricing sentiment remained soft, driven by an oversupply and weak demand recovery across both domestic and export markets, setting a cautious tone for the upcoming quarter.
APAC
During Q1 2025, the Southeast Asian Methanol market observed a quarter-on-quarter price increase of 4.2%, driven by stable domestic demand and moderate supply constraints. Indonesia’s methanol prices exhibited a largely stable yet slightly bullish trend throughout the quarter. Despite ongoing geopolitical risks and supply chain disruptions—most notably the Red Sea crisis and plant shutdowns in Brunei—supply remained generally adequate due to high stock levels and consistent imports from the Middle East. Steady consumption from key downstream sectors such as formaldehyde, paints and coatings, and MTBE production supported the market's resilience. However, price hikes were mostly marginal, influenced by occasional logistical challenges, tight spot cargo availability, and reduced operating rates at certain facilities. The demand from Indonesia’s industrial sector remained consistent, buoyed by stable construction and manufacturing activity. Meanwhile, India recorded a significant 12.76% increase in Methanol prices compared to the previous quarter. This was driven by tighter supply, plant shutdowns, and fluctuating demand from downstream sectors. Toward the end of the quarter, Iranian methanol shipments resumed, improving regional supply sentiment and offering potential stabilization for the upcoming period.
Europe
During Q1 2025, the methanol market in the Netherlands experienced a gradual downtrend, marked by a 5% overall decrease compared to the previous quarter. January began with stable prices amidst heightened geopolitical tensions and disruptions in the European gas sector. Although methanol demand held firm in segments like MTBE and formic acid, weaker construction activity and downstream consumption began to weigh on the market. As the quarter progressed, February witnessed consistent declines in methanol prices due to subdued demand, sufficient inventories, and easing feedstock natural gas costs. Industrial activity remained restrained, and order volumes dipped, prompting manufacturers to adopt a conservative purchasing approach. However, a late-month rebound occurred due to port congestion and strike-related supply chain issues. In March, prices temporarily rose on account of logistical bottlenecks and surging feedstock costs, but gains were short-lived. By the month-end, prices retreated again due to weak downstream demand and improving cost efficiency in production. Overall, the quarter reflected a bearish market tone shaped by macroeconomic challenges and cautious end-user sentiment.
South America
In Q1 2025, the methanol market in Brazil experienced a modest decline of 1.97% in prices compared to the previous quarter. The quarter began with a stable pricing environment, supported by balanced supply-demand dynamics and steady consumption from core sectors such as paints, coatings, and MTBE production. However, by mid-January, the market began to feel downward pressure due to an influx of low-cost imports from the U.S. and weakening demand from key derivative industries. Throughout February, market sentiment remained bearish as inventories remained high and demand from downstream sectors, including construction and automotive, slowed. Although there was a brief uptick in March driven by restocking activity, logistical challenges, and a short-term rise in domestic demand, this momentum was not sustained. By the end of the quarter, a renewed wave of cheaper imports once again softened market conditions. Overall, the Brazilian methanol market in Q1 was shaped by steady supply, cautious demand, and competitive import pressures, resulting in a slight downward price trend.
MEA
In Q1 2025, the methanol market in Saudi Arabia recorded an overall price increase of 4.79% compared to the previous quarter. The quarter commenced with a sharp uptick in early January, fueled by strong manufacturing activity, steady export volumes to Asia and Europe, and a surge in demand from the alternative fuels and derivatives sectors. Stable production, supported by low-cost natural gas feedstock, further reinforced supply reliability. Throughout January and early February, prices stabilized as downstream demand remained consistent and upstream cost fluctuations were minimal. However, mid-February saw a brief decline due to reduced consumption in key sectors like formaldehyde and acetic acid, and emerging policy shifts around clean energy. Despite this, prices held steady into March, supported by robust domestic production and continued export momentum to China and India. Toward the end of March, a decline in feedstock costs coupled with weaker demand from the MTBE segment led to a mild downturn. Nevertheless, overall quarterly trends remained bullish, underscored by strong early-quarter gains.
For the Quarter Ending December 2024
North America
The North American Methanol market in Q4 2024 experienced notable price surges and dynamic market conditions driven by fluctuating demand and supply factors. Methanol prices in the USA rose sharply, with significant increases in October and November due to strong demand from the downstream Acetic Acid and Dimethyl Amine sectors, supported by heightened consumption in the paints and coatings industry.
Natural gas prices, a key feedstock, provided mixed cost support, remaining stable during the shoulder season but experiencing brief upward trends in November, adding to production costs. Meanwhile, global influences, including EU regulations promoting Methanol bunker fuel demand and record-breaking alternative fuel vessel orders, added momentum to the market. Despite sufficient inventories, supply chain disruptions such as the ILWU strike and BCMEA lockout in Canada exacerbated regional logistics challenges, while production outages in the U.S. and Europe in December tightened supply, pushing prices further.
Methanol prices continued to rise steadily throughout the quarter, reflecting robust demand and constrained supply, with December marking the culmination of this upward trend despite some flat demand from derivatives like paints and coatings. The sustained price increases showcased the resilience of the Methanol market in a volatile global environment.
APAC
The Methanol market in the APAC region exhibited a declining pricing trend during Q4 2024, driven by weak demand and balanced to oversupplied market conditions. In early October, Methanol prices in Japan remained stable due to balanced market fundamentals, supported by steady supply flows from the US and the Middle East and modest downstream demand. However, as the quarter progressed, prices began to decline, influenced by falling global coal prices, reduced electricity demand due to temperate weather, and maintenance of thermal power units, which lowered power plant consumption. Domestic demand for Methanol weakened, with derivative markets like formaldehyde and MTBE showing reduced activity. This was further compounded by steady production levels and ample inventory, creating a supply-demand imbalance that exerted downward pressure on prices. By late November and early December, the Methanol market in Japan showed stagnancy, as trading activity slowed ahead of year-end term contract negotiations, with market participants focusing on securing long-term supply arrangements rather than engaging in spot transactions. The combination of subdued demand, oversupply, and reduced trading activity contributed to the overall decline in Methanol prices across the APAC region during this period.
Europe
The European Methanol market witnessed a significant surge in prices during Q4 2024, driven by a combination of supply constraints and increased production costs. Early in the quarter, prices began to rise as natural gas costs escalated, reflecting higher winter demand and intensified competition for LNG cargoes. As natural gas is a critical feedstock for Methanol production, these higher costs translated into increased Methanol production expenses, which were passed on to the market. Despite a temporary decline in natural gas prices later in the quarter, Methanol prices continued to rise due to strengthened demand from derivative markets, particularly formaldehyde and other downstream applications. Production outages in both the U.S. and Europe further tightened supply, intensifying the upward pressure on prices. Additionally, geopolitical factors, including tensions in key energy markets and logistical challenges, exacerbated supply shortages. By December, the market reached peak pricing levels, reflecting persistent constraints and strong demand, with Middle East producers reportedly redirecting spot volumes to Europe to capitalize on the favourable market conditions. This sustained price increase highlighted the resilience of the European Methanol market amidst a volatile supply and demand environment.
South America
The South American Methanol market experienced a notable surge in prices during Q4 2024, fuelled by a combination of international supply constraints and robust downstream demand. Early in the quarter, the market remained relatively stable, supported by balanced supply-demand fundamentals and steady inflows from key exporting regions. However, as the quarter progressed, geopolitical tensions in the Middle East and plant maintenance activities disrupted production rates in major Methanol-exporting countries, leading to tighter global supply. This global strain was compounded by increased demand from downstream sectors, including formaldehyde and MTBE production, both of which are integral to various industrial applications. In Brazil, these international challenges were further intensified by local factors such as rising freight rates and currency fluctuations, which elevated the cost of Methanol imports. The combination of constrained availability and increased logistical expenses created upward pressure on domestic prices. This trend underscores the Methanol market's sensitivity to global supply dynamics and highlights the cascading impact of international disruptions on regional pricing structures.
MEA
The Methanol market in the Middle East witnessed a noticeable decline in prices during Q4 2024, driven by a mix of weak demand fundamentals and an oversupply scenario. The quarter began with prices remaining largely stable due to balanced market conditions and consistent production levels, supported by steady feedstock costs. However, as the quarter advanced, a decline in global coal prices and temperate weather conditions reduced residential and industrial energy consumption, particularly in the power sector. This led to an overall softening of the energy market, which directly influenced Methanol pricing. Furthermore, subdued demand from key export destinations, such as Asia, significantly impacted market dynamics, as limited purchasing interest restricted price movement. Additionally, weak performance in derivative markets, including formaldehyde and MTBE, further reduced Methanol consumption rates, creating an imbalance between supply and demand. Toward the end of the quarter, trading activity diminished as market participants shifted focus to securing 2025 term contracts, resulting in a stagnancy in short-term transactions. Ample inventory levels and reduced offtake prevented any recovery, cementing the declining price trend for Methanol in the region.
For the Quarter Ending September 2024
North America
In Q3 2024, the Methanol market in North America witnessed a significant upward trajectory in prices, driven by a confluence of key factors. The region experienced a surge in Methanol prices due to tightening supply chains, heightened demand from downstream industries, and rising raw material costs.
Supply constraints stemming from plant shutdowns and disruptions in global supply chains contributed to the scarcity of Methanol, exerting upward pressure on prices. Moreover, robust demand from various sectors such as formaldehyde production and chemical manufacturing further fueled the price escalation.
Within the USA specifically, the market saw the most pronounced price changes, with a 38% increase from the same quarter last year. Notably, the quarter recorded an 8% price hike from the previous quarter in 2024, indicating a sustained upward trend. The comparison between the first and second half of the quarter revealed a 4% price increase, highlighting consistent growth. The quarter culminated with Methanol Contract prices reaching USD 722/MT DEL Louisiana, underscoring the prevailing positive pricing environment in the USA market.
APAC
The third quarter of 2024 has been characterized by increasing Methanol prices across the APAC region, driven by a combination of factors influencing market dynamics. Demand remained steady from various downstream industries, such as formaldehyde and acetic acid production, while supply constraints and import volumes contributed to the price uptrend. Japan experienced the most significant price changes during this period, reflecting broader trends in the region. This positive outlook was further bolstered by a notable increase in demand from the formaldehyde and formalin sectors, which experienced significant growth due to the expansion of several production units. The quarter saw a notable 18% increase in Methanol prices compared to the same period last year, indicating a substantial shift in pricing dynamics. Additionally, there was a 7% price increase from the previous quarter in 2024, showcasing consistent upward momentum. The second half of the quarter recorded a 4% price increase compared to the first half, highlighting a sustained growth trajectory. Ultimately, the quarter-ending price of Methanol stood at USD 345/MT CFR Nagoya in Japan, reflecting the overall positive and increasing sentiment in the pricing environment.
Europe
In Q3 2024, the Methanol market in Europe experienced a notable uptick in prices, driven by various factors. Significant influences included a surge in demand from downstream industries, particularly in the formaldehyde and acetic acid sectors, leading to a tightening of supply levels. Additionally, rising energy costs and logistical challenges in shipping contributed to the overall bullish market sentiment. The Netherlands, in particular, witnessed the most significant price changes, reflecting the broader trends in the region. The feedstock natural gas prices have increased in August 2024 as surge was primarily due to geopolitical tensions, including the Middle East conflict and potential supply disruptions at the Russian-Ukrainian border. The correlation between price changes and seasonality was evident, with the quarter-on-quarter increase of 11% and a substantial 50% increase from the same quarter last year highlighting the market's positive trajectory. The second half of the quarter saw a 5% price increase compared to the first half, indicating sustained growth. The quarter concluded with Methanol priced at USD 366/MT FD Rotterdam in the Netherlands, reflecting a consistently increasing pricing environment throughout Q3 2024.
MEA
The Methanol pricing landscape in the MEA region for Q3 2024 has been characterized by a notable uptrend, with several factors contributing to the price escalation. Various significant elements influenced market dynamics, including robust demand from key industries, supply chain disruptions, and elevated production costs. The quarter witnessed a 29% increase from the same period last year, indicating a substantial price surge driven by evolving market conditions. Notably, the previous quarter in 2024 saw a 6% price hike, reflecting a consistent upward trajectory. Within Saudi Arabia, which experienced the most significant price fluctuations, the Methanol market displayed a clear trend of increasing prices. Market trends were influenced by seasonal patterns and correlations in price changes, with a distinct 5% difference observed between the first and second half of the quarter. Despite fluctuating conditions, the quarter concluded with Methanol Contract prices reaching USD 305/MT FOB Al Jubail. This consistent price growth underscores a positive pricing environment, highlighting stability and optimism in the market.
FAQs
1. What is the current price of Methanol in July 2025?
The current price of Methanol as of July 2025 is USD 280.00/MT, based on Methanol Contract FOB Al Jubail (Saudi Arabia).
2. What is the Methanol Price Forecast for Q3 2025?
Methanol prices are expected to stay rangebound or slightly bearish amid persistent oversupply, fragile demand recovery, and continued macroeconomic uncertainty.
3. What are the major factors influencing Methanol Production Cost Trend?
Key drivers include natural gas prices, freight rates, plant utilization levels, and currency volatility in import-dependent markets like Brazil.
4. What is the Methanol Demand Outlook for upcoming months?
Demand remains soft but stable across key sectors like formaldehyde, fuel blending, and resins. Any major shifts will depend on macroeconomic cues, geopolitical stability, and energy price trends.
