ACME Green Molecules finalises a $1 billion long-term deal to export 100,000 tonnes per year of green methanol to Japan's Mitsubishi Gas Chemical, marking India's debut as a global supplier of RFNBO-compliant marine fuel. The agreement underscores strong demand for renewable methanol in shipping and supports India's investment in new production capacity, likely keeping green methanol prices elevated as contracted supply tightens availability.
Methanol Price Trend Analysis 2026: Market Insights, Supply Demand Analysis, Price Drivers, Latest News & Historical Prices
Written ByPragati Agarwal
Methanol Price Trend Q2 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Ethanol | Canada | CIF | USD 767.74/MT | May 2026 |
| Methanol | China | FOB | USD 485.92/MT | April 2026 |
| Methanol | USA | FOB | USD 592.74/MT | April 2026 |
| Methanol | Germany | FOB | USD 530.00/MT | April 2026 |
| Methanol | India | FOB | USD 535.92/MT | April 2026 |
| Methanol | Japan | FOB | USD 527.92/MT | April 2026 |
Stay updated with the latest methanol prices, historical data, and tailored regional analysis
- Methanol prices weakened in Q2 2026 as early shipping risk support faded and buyers delayed procurement once Middle Eastern cargo availability improved.
- Feedstock pressure stayed mixed, with stable coal availability limiting domestic cost pressure, while gas and freight uncertainty supported replacement costs.
- Downstream demand remained cautious across methanol-to-olefins, formaldehyde, acetic acid, dimethyl ether, construction materials, and chemical intermediates.
Asia
In China, the prices of Methanol were ~RMB 3.32/kg in April and ~RMB 3.16/kg in May, showing a ~4.7% decrease. Prices remained supported early in Q2 by low foreign arrivals, port destocking, plant maintenance, and uncertainty around Middle Eastern shipments. However, the market corrected later as Iranian plants resumed production, buyers expected additional cargo arrivals, and derivative users delayed purchases. China produced 400 million tonnes of raw coal in May, down 1.7% year-on-year, while January-May output reached 1.98 billion tonnes, down 0.3%, keeping coal-based methanol cost pressure contained. Demand stayed weak as methanol-to-olefins buyers remained cautious and formaldehyde use was affected by China’s property slowdown, with real-estate investment down 16.2% year-on-year during January-May.
Europe
European methanol prices were cost-supported but demand-capped during Q2’26. Freight and supply-route disruptions lifted replacement costs, while energy uncertainty kept producers cautious. However, sufficient regional availability and weak derivative consumption prevented a sustained increase. Euro-area industrial production rose only 0.3% year-on-year in April, while durable consumer-goods output declined 4.0%, limiting demand from formaldehyde, engineering plastics, coatings, and automotive-linked chemicals. Construction also remained uneven, as total output improved but building construction declined 5.2%, reducing methanol-linked demand from wood panels, resins, insulation, and adhesives.
North America
In the United States, the prices of Methanol were ~USD 592.74/MT in April and ~USD 586.35/MT in May, showing a ~1.1% decrease. U.S. prices carried less supply premium than Asia because domestic natural gas access supported regional production. EIA forecast industrial gas consumption to reach around 22.6 Bcf/d in June 2026, helping contain manufacturing costs. Demand remained moderate, with manufacturing output unchanged in May and housing starts down 15.4% month-on-month, weakening formaldehyde-based construction applications.
Analyst Insight
According to Procurement Resource, methanol prices may stay under pressure as Middle Eastern supply normalizes. Weak construction and chemical demand may cap recovery, while freight and energy risks can limit sharper declines.
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- Global methanol prices showed sharp volatility, with initial stability followed by a strong surge due to supply disruptions linked to the Iran war and Strait of Hormuz blockage, tightening global trade flows.
- Feedstock conditions remained mixed, as stable coal costs in China were offset by sharp energy and logistics disruptions globally, raising production costs and limiting supply availability.
- Downstream demand remained uneven, with weak margins in acetic acid and MTBE sectors early on, while later supply concerns and restocking supported consumption across olefins and chemical derivatives.
Asia
In Asia, methanol prices strengthened as supply concerns outweighed earlier weakness. In China, prices were about ~RMB 2.32/kg (Spot FD) in January and around ~RMB 2.75/kg in March, up by about 18.46%. Early in the quarter, East China port prices moved narrowly because foreign vessel unloading increased slightly, port inventories accumulated, and coastal trading weakened ahead of Spring Festival. Later, the market turned firm as the Iran war disrupted imports through the Strait of Hormuz. Iran is the world’s second-largest methanol producer and China is its primary buyer, so the threat to Iranian supply tightened port availability and supported a supply-driven rise. In India, prices were about ~INR 28.65/kg (Spot) in January and around ~INR 35.10/kg in March, up by about 22.48%. The increase was driven by uncertain arrivals from the Middle East and tighter spot availability, which pushed buyers to secure alternative cargoes. These disruptions also supported downstream olefins-linked sentiment.
Europe
In the European market, methanol prices rallied because of higher energy and logistics costs resulting from the Middle East crisis and reduced movement through the Strait of Hormuz. Higher costs of key raw materials and transport costs led to sharp rallies on the part of key producers, with buyers stepping up purchases. The volumes of trading increased significantly in March as traders rushed to hedge themselves against the coming rally.
North America
Prices in North America were largely sustained on account of reduced availability in the global markets rather than a supply shock in the local market. Disruptions at the Strait of Hormuz meant that there was lower trading capability in the global methanol market, which helped boost exports from the Atlantic Basin. Demand from derivatives remained mixed.
About Methanol
Methanol, a polar solvent, is a colourless, reasonably volatile liquid. It has a faintly sweet pungent odour like that of ethyl alcohol. It can be thoroughly dissolved in water. The vapours of Methanol are slightly heavier than air.
Methanol Product Detail
Chemical Formula
C10H20O
Molecular Weight
32.04 g/mol
Industrial Uses
Antifreeze agent, Solvent, Fuel, Denaturant for Ethanol, Biodiesel
Synonyms
67-56-1, Methyl alcohol, Methyl alcohol, Wood alcohol, Wood spirit
Supplier Database
Zagros Petrochemical Co., Sichuan Lutianhua Co., Ltd., Methanex Corporation, Ar-Razi Saudi Methanol Co. (SABIC), Yankuang Group, Proman AG
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Methanol Production Processes
- Production of Methanol via Syn Gas; and via Natural Gas
The production process of Methanol starts from syn gas. The process requires proper conditions such as high pressure and moderate temperatures where carbon monoxide and hydrogen react over a catalyst such as a mixture of copper and zinc oxides to produce methanol.
Frequently Asked Questions
During Q1 2026, methanol prices increased sharply in both India and China. In India, methanol prices showed a ~22.4% increase from January to March 2026, while in China they witnessed a ~31.77% increase during the same period. The rise was driven by tighter Middle East supply, higher freight costs, disrupted import flows, and stronger restocking from downstream chemical buyers.
Quarter-on-quarter, the average methanol price in India recorded a ~1.9% increase in Q1 2026 compared with Q4 2025, while in China the average price witnessed a ~17.7% increase over the same period. The stronger Q-o-Q rise in China reflected tighter import availability, reduced port inventories, and stronger methanol-to-olefins buying compared with the previous quarter.
The methanol outlook for 2026 remains firm and volatile, with prices expected to stay sensitive to Middle East supply, Iranian cargo availability, natural gas costs, coal-based production economics, and shipping conditions. China’s MTO demand and India’s import dependence will remain important drivers. Prices may ease if logistics normalize, but supply risks and energy-cost pressure could keep the market elevated.
The main factors affecting methanol prices in Q1 2026 were disrupted import supply and higher energy-linked costs. Middle East shipping uncertainty tightened trade flows into Asia, while natural gas and coal-related production costs supported higher offers. Stronger restocking from MTO, formaldehyde, acetic acid, and MTBE buyers further lifted prices in India and China.
Major methanol markets include China, India, the United States, Saudi Arabia, Iran, Trinidad and Tobago, Malaysia, Oman, Qatar, Russia, and the Netherlands. China is the largest consuming market, while the Middle East remains a key export region. Major companies include Methanex, SABIC, Proman, Zagros Petrochemical, PETRONAS Chemicals, Celanese, Mitsubishi Gas Chemical, BASF, and Yankuang Energy.
In January 2026, Assam Petro-Chemicals Ltd signed an MoU with Deendayal Port Authority to establish a 150 TPD e-methanol facility at Kandla Port, Gujarat. The project supports India's green shipping ambitions and expands domestic low-carbon methanol production capacity. The development highlights growing investment in alternative marine fuels and emerging demand for renewable methanol in transportation and industrial applications.
Methanol is mainly produced from natural gas, coal, or synthesis gas, while low-carbon routes use biomass, captured carbon dioxide, and green hydrogen. The value chain includes feedstock preparation, syngas generation, methanol synthesis, purification, storage, marine or rail transport, terminal distribution, and downstream conversion into formaldehyde, acetic acid, MTBE, MTO products, biodiesel, solvents, fuels, and olefins.
Methanol demand is mainly driven by formaldehyde, acetic acid, methanol-to-olefins, MTBE, dimethyl ether, biodiesel, solvents, plastics, paints, adhesives, construction materials, fuels, and marine fuel applications. In China, MTO demand is especially important because methanol is converted into ethylene and propylene. In India, formaldehyde, plywood, laminates, chemicals, and fuel blending support consumption.
A key 2026 policy development affecting methanol was India’s temporary full customs duty exemption on critical petrochemical products, including methanol, until June 30, 2026. The measure was introduced to ensure supply stability and shield domestic industries from West Asia-related supply disruptions. It supported Indian import availability, reduced landed cost pressure, and helped downstream users in chemicals, plastics, textiles, packaging, pharmaceuticals, and construction.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess methanol prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.
About the Author
Pragati Agarwal
Senior Business Insights Analyst
Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.
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