Asia
In Q4’25, the Asian methanol markets reflected differences in the pricing. India continued as the strongest market. The supply side tightened considerably with the imposition of U.S. sanctions affecting the flow of Iranian material, which had been the primary source for the Indian methanol markets. The importers avoided the sanctioned material and opted for alternative sources in the Middle East. The domestic markets found it difficult to procure the material. The downstream markets, including formaldehyde, acetic acid, and biodiesel, also reflected the increase in the prices.
The Chinese markets reflected a softer trend. The coal prices reflected an increase during the quarter, while some units underwent maintenance. However, the overall supply side reflected high availability, including steady domestic supply and strong import volumes. The port inventories reflected high levels, while the demand side reflected low demand for MTO and other derivative markets. The markets reflected a stable trend during the quarter. The prices in the Chinese market settled at around 301 USD/MT (Spot FD) in December’25.
Europe
European methanol prices traded in a narrow band throughout Q4’25. Demand from major industrial end-user markets was subdued, with buyers purchasing cautiously due to the prevailing economic scenario. Supply-side conditions were comfortable, with imports also continuing as before. Though the energy markets were volatile, the prices did not show enough strength to push the prices up. Buyers were largely adopting a wait and watch strategy, with only sufficient business transacting.
North America
In the North American market, prices for methanol dipped during Q4’25. Demand remained subdued, and inventories were sufficient for the demand. Prices were also impacted by the softer trends in the Asian and European markets, which impacted exports. Suppliers also faced subdued demand, and buyers were not keen on sourcing additional volumes. This impacted prices, which remained under pressure.
Analyst Insight
According to Procurement Resource, the Methanol market is expected to be volatile in the near-term. India is expected to remain firm due to constraints, while China, Europe, and North America would continue to face pressure unless demand picks up and inventories ease.