During the week ending 17th October 2025, spot methanol pricing experienced significant regional dissimilarity, with India driving the increase, China showing slight increase, and most other regions remaining unchanged. The global methanol market featured components of tight supply, geopolitical disruption, and weak downstream demand, producing a volatile pricing environment throughout Asia and the rest of the globe.
Spot methanol prices in India rocketed 10.5% higher on the back of dwindling supply and rising domestic demand. The rally follows U.S. sanctions on Iranian buyers of methanol, which had accounted for some 80% of India's May鈥揓une 2025 methanol arrivals. With buyers now avoiding Iranian origin cargoes, the market has turned to non-sanctioned sources, pushing deal prices significantly higher towards the close of the week. The jump in cost has pinched downstream producers such as MDC and producers of sodium methoxide, who are facing increasing conversion costs.
The Office of Foreign Assets Control (OFAC) imposed sanctions on a few Indian players, including BK Sales Corp., Chemovick Private Ltd., and Vega Star Ship Management, thereby increasing market caution and reshaping trade patterns. The contagion impact of the sanctions would be experienced on regional methanol dynamics during the next few weeks.
In China, methanol prices rose 1.9% week-on-week, supported by rising coal prices from contracting supply and jumping demand. Early-to-middle-of-the-week gains were backed by stronger futures and trade sentiment, but prices softened towards the end of the week on reduced trading volumes. Domestic methanol prices traded in a narrow range before decreasing, as ample supply and weak downstream demand kept sentiment in check. Strategic plants such as Jiangsu Sopo and Yulin Kaiyue's maintenance shutdowns and Shanxi Tianze's restricted output caused a net capacity utilization decline, which gave some support to prices.
Methanol prices in Southeast Asia were steady this past week on thin trading and limited liquidity. Some participants are hopeful the price will be catching up with India prices but others, particularly in Indonesia, believe prices could be lower given weak demand for vinyl acetate monomer (VAM) and acetic acid (AA). India, a known buyer of VAM and AA products from Southeast Asia, sanctions could limit the consumption of methanol in the region.聽
In the United States, methanol prices dropped 2%. The decrease is attributed to weak regional demand, and bearish signals from Asia and Europe.
As per 果酱视频, methanol markets are expected to be volatile as geopolitical tensions and changing trade flows continue to transform global supply chains. In India, prices are likely to remain high as ongoing sanctions on Iranian suppliers have upset traditional import flows and have constricted availability. China's methanol market is expected to be subject to mixed pressures with increasing coal prices supporting the prices, but weak downstream demand potentially constraining gains. Southeast Asia is expected to witness divergent trends鈥攕ome places may experience prices rising in reaction to India's upsurge, but others may soften as demand for acetic acid and vinyl acetate monomer declines. Methanol prices are expected to stay under pressure in the U.S. as regional demand is sluggish and inventory levels are high.
