Udeesha Tomar
AVP - Strategy and Solutions
Leading procurement research solutions across chemicals, materials, and food & beverages, with expertise in price forecasting and market analytics.
Methanol (Spot) Price Trend Analysis 2026: Supply Demand Analysis, Market Insights, Price Drivers, Historical Prices & Latest News
Written ByUdeesha Tomar
Methanol (Spot) Price Trend H2 2025
The European methanol spot market experienced mixed trends during the second half of 2025. The period commenced with significant upward momentum as supply tightness emerged across the region. Several production facilities faced operational challenges, including planned maintenance turnarounds and unplanned outages that reduced available capacity. Natural gas feedstock costs, a critical input for methanol production, fluctuated in response to seasonal demand patterns and geolocation supply considerations, influencing production economics. These supply-side factors combined to push prices sharply higher through the summer period.
In the latter half of the period, the methanol (spot) price curve witnessed a slight correction. This stemmed from improved production availability as facilities completed maintenance activities and returned to normal operations. Additionally, demand from key downstream sectors showed signs of moderation. Energy and fuel blending applications also demonstrated reduced offtake as seasonal factors influenced consumption patterns. Prices declined moderately through autumn before stabilizing at levels notably below the peak. Trade flows adjusted to changing supply-demand balances, with import activity from extra-regional suppliers helping to ease tightness. Market participants adopted more cautious inventory strategies, balancing immediate requirements against expectations of continued supply improvement.
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| Product | Category | Region | Price | Last Updated Month |
| Methanol (Spot) | Chemicals | Europe | 394 USD/MT | January 2025 |
| Methanol (Spot) | Chemicals | Europe | 318 USD/MT | June 2025 |
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In the first half of 2025, Methanol (Spot) prices witnessed a mixed trend in the European markets. The prices were about 394 USD/MT (FOB) in January and around 318 USD/MT in June. From the beginning of the quarter, the prices started to move downwards amid the weak downstream demand and oversupply conditions. Despite some recovery in key industries like construction and automotive, the demand for methanol failed to meet expectations, limiting its procurement from chemical producers and leading to downward pressure on prices.
In addition, the incoming summer season received minimal backing from MTBE sectors, which also contributed to the price drop. The European market was also well supplied with steady arrivals of imports from the US, Trinidad, and the Middle East. Local methanol (spot) production also remained steady, and port inventories in Northwest Europe were high. Since the European methanol (spot) market was more demand driven the local regional dynamic varied slightly from the global trend, where significant gains could also be seen in some key markets.
As months progressed, a slight rebound in the prices was witnessed during the month of May. This was primarily because market dynamics shifted as the oversupply situation started to improve. Towards the end of the period, methanol prices stabilised. The combination of balanced supply and stable logistics, with high vessel capacity and efficient logistical operations, ensured smooth import flows. Despite the previous decline in prices, the market remained more rangebound.
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