Methanol Pricing Report

Methanol Prices December 2023

The North American methanol market continued healthy with elevation in market situations in Q4 2023 due to the elevated demand from downstream derivative establishments. The USA experienced a swell in contract methanol prices, which can be attributed to the high market fundamentals and low-level inventories.

In South Korea, the price trend for methanol decreased by 18% compared to the same quarter last year. Currently, the quarter ending price of methanol CFR Busan in South Korea was $314/MT through December 2023.

In the Netherlands, the price trend for methanol showed an association with the overall market trend, with a price percentage comparison of 17% between the first and second half of the quarter. The current quarter ending price of methanol FD Rotterdam in the Netherlands is $333/MT in December 2023.

In Saudi Arabia, the latest price of methanol contract FOB Al Jubail for the current quarter is $222/MT during Q4 2023.

Methanol Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Methanol Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of methanol pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing methanol price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Methanol Market Analysis

The global methanol market size reached US$ 36.3 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 55.2 Billion, at a projected CAGR of 4.60% during 2023-2032.

• The increasing demand for methanol in the end-use industries, including automotive, construction, and electronics, is driving the market growth.
• The widespread use of methanol as a fuel, solvent, and chemical feedstock for nearly all the industries promotes the product demand.
•  The market is also expanding due to the increasing consumption of methanol as an ecological alternative fuel, spurred by mounting climatological concerns and regulations.
• Continuous technological developments in methanol production processes, particularly the introduction of renewable methanol production technologies, are driving the market.
• Mounting investments in methanol production and infrastructure development are expanding the market growth.
• The methanol-based industries’ expansions in the developing countries, such as China and India, are supporting the market growth.
• The progressive regulations supporting ethanol as fuel and raw material are fueling the need for the product in the market.
• The fluctuations in crude oil prices in the competitive resistance of methanol as a fuel to the commercially available fuel are influencing the market.
• Rising trends of environmentally friendly and renewable energy sources are promoting the Bia based continual methanol market.
• Increasing expansions in the market and research and development initiatives are leading to new methanol-feeding mechanisms, which initiates the market potential.
• Methanol usage in plastic, glue, and paint manufacturing in the chemical sector is promoting the methanol market.
• The technological improvement to produce olefins, called methanol-to-olefins, methanol-to-propylene, and other similar patterns is propelling the methanol market growth.
• The significant companies increasing their methanol production potential to fulfill the market necessity is hampering the market competition.
• The expanded consciousness about methanol’s advantages as a marine fuel in marine industry.
• Adoption of methanol blending in gasoline fuels for cleaner combustion is a key trend in the automotive sector.
• Methanol's use as a solvent in pharmaceutical and personal care products is driving demand in these industries.
• Environmental concerns regarding greenhouse gas emissions from traditional fuels are boosting interest in methanol as a cleaner alternative.
• Rising demand for formaldehyde, acetic acid, and methyl tert-butyl ether (MTBE) drives the consumption of methanol in various chemical processes.

Methanol News

The report covers the latest developments, updates, and trends impacting the global methanol market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in methanol production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the methanol industry:

• In 2024, Methanex Corporation announced the commercial production of its new 1.8-million-ton methanol plant, Geismar 3 (G3), in Geismar, Louisiana. It has been delayed due to complications that occurred in the autothermal reformer (ATR) during the late stages of the initial start-up process.    
• In 2022, SABIC unveiled its plans to collaborate with Saudi Aramco and Air Products to develop the world's largest green hydrogen project in NEOM, Saudi Arabia. The project aims to produce green hydrogen and ammonia, with methanol as a byproduct. SABIC's involvement underscores its commitment to sustainable practices and the development of alternative energy sources.

Product Description

Methanol, also known as methyl alcohol or wood liquor, is a versatile chemical compound that can be used for many purposes. It is a colorless volatile liquid, having a characteristic smell and taste, and will easily dissolve in water. It is made primarily by the catalytic synthesis of carbon monoxide and hydrogen (known commonly as synthesis gas in the methanol industry), a process referred to simply as methanol synthesis.

Methanol's principal use, besides being a fuel, is as a raw material for making formaldehyde, acetic acid, and methyl tert-butyl ether (MTBE). These are basic ingredients in the manufacture of plastics, adhesives, paints and medicinal products. Methanol's role in chemical feedstock underpins its importance within industrial processes and supply chains.

Methanol is widely used as a solvent in the paint, coatings, and pharmaceutical sectors owing to its exceptional solubility characteristics. Its ability to dissolve a wide range of substances makes it valuable in formulations that require effective dispersion and mixing.

Regional Coverage

The report provides a detailed analysis of the methanol market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Methanol Price

The report offers a holistic view of the global methanol pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Methanol Price

The European region has experienced a bearish price trend owing to inadequate supplier cost support and weak demand fundamentals. It was further exacerbated by the low demand recovery, leading to a downfall in prices. Moreover, some regional countries have witnessed further decreases in prices, owing to the sufficient methanol supplies and low rate of product consumption from downstream industries.

This analysis can be extended to include detailed methanol price information for a comprehensive list of countries.

North America Methanol Price

In North America, the methanol market has witnessed consistent growth due to heightened product demand from downstream derivative businesses. The price trend was primarily affected by the elevating production costs and a strong upstream market. Furthermore, it was influenced by the inadequate product stock and rising spot market purchases.

Specific data on methanol prices within the United States and Canada can also be provided.

Middle East and Africa Methanol Price

The methanol market in the Middle East and Africa (MEA) region showcased a bearish sentiment owing to weaker demand fundamentals from downstream businesses. It has led to limited self-consumption and low exports, resulting in downward price trends. Furthermore, the region is experiencing challenging economic conditions and a liquidity crisis, leading to a further decline in market activity and purchasing power.

In addition to region-wise data, information on methanol prices for countries can also be provided.

Asia Pacific Methanol Price

The methanol pricing in the Asia Pacific region is steadily rising due to strong product demand from downstream enterprises and low supply. Furthermore, the elevating demand for acetic acid and formaldehyde in regional countries, coupled with higher trading prices on the market, is acting as a growth-inducing factor. Moreover, the surge in bulk trading, owing to the low availability of the product in the region, further affected the price trend.

This analysis can be further extended to include detailed methanol prices for a comprehensive list of countries within the region.

Latin America Methanol Price

The analysis of methanol prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of methanol pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting methanol price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the methanol industry.