Methanol Prices in Q2 Witness Volatility Amid Global Supply Shifts

05-Aug-2025

The global methanol industry is navigating a period of moderated pricing momentum in Q2 2025, reflecting diverse regional supply-demand dynamics and fluctuating downstream activity. According to IMARC Group’s newly released publication, Methanol Price Trend, Index and Forecast Data Report 2025 Edition, that provides updated insights for Q2 2025, the market is shaped by a stable demand base across chemicals, energy, and construction sectors, but disrupted by oversupply in certain regions and subdued trading sentiment. The most notable market movements were observed in the North America, Asia Pacific and Europe.

Q2 2025 Methanol Prices:

USA: USD 705/MT
South Korea: USD 330/MT
Netherlands: USD 347/MT
Taiwan: USD 325/MT
China: USD 332/MT

To access real-time prices

To access real-time prices Request Sample

Methanol’s sustained demand across high-performance industries, such as chemicals, fuels, and construction materials, continues to underpin its strategic importance, contributing to a stable or upward global price trend amid evolving regional supply dynamics.

Key Regional Price Trends and Market Drivers:

USA

Methanol prices in the United States reached USD 705/MT in Q2 2025. The market remained steady due to ample domestic supply, even though imports from Latin America declined. Trading activity was subdued in anticipation of the 4th of July holiday, and downstream demand, particularly from coatings and MTBE sectors, was stable but unspectacular.

South Korea

Methanol was priced at USD 330/MT in South Korea for Q2 2025. The market remained balanced, supported by steady production, no major plant disruptions, and normal demand from formaldehyde and olefin sectors. The absence of volatility sustained pricing equilibrium.

Netherlands

Methanol prices in the Netherlands dropped to USD 347/MT during the second quarter of 2025. The decline was driven by oversupply caused by a steady influx of low-cost cargoes from the US and the Middle East. Weak spot market demand and stagnant industrial activity across Europe reinforced the downward pressure.

Taiwan

Taiwan recorded methanol prices of USD 325/MT during June 2025. A downward trend was driven by regional oversupply from Iran and Southeast Asia. Weak downstream demand, particularly from MTBE and formaldehyde industries, discouraged aggressive spot purchases and dragged prices lower.

China

In China, methanol prices held at USD 332/MT in Q2 2025. Balanced contract-based supply and consistent operation of methanol-to-olefin (MTO) units prevented broader regional bearish trends from impacting the domestic market. Downstream demand remained constant, supporting price stability.

Methanol Industry Overview:

The global methanol market reached a value of USD 37.97 Billion in 2024 and is expected to expand to USD 56.91 Billion by 2033, growing at a CAGR of 4.40% during 2025-2033. The market benefits from rising consumption across end-use industries including automotive, construction, and electronics, coupled with methanol’s increasing use as an alternative fuel. Its role as a key feedstock in formaldehyde, acetic acid, and MTBE production ensures continued relevance in industrial value chains.

Key drivers for the market include technological advancements in methanol-to-olefin and methanol-to-propylene conversion, along with growing production in emerging economies, especially China and India, which are accelerating global supply capacity. Increasing environmental regulations, fluctuations in crude oil prices, and the drive toward cleaner energy sources are further contributing to methanol’s expanding market potential.

Recent Market Trends and Industry Analysis:

The methanol industry is witnessing sustained expansion, supported by its integral role in the production of formaldehyde, acetic acid, MTBE, and various solvents. As a chemical feedstock, methanol supports a broad range of industrial applications, including adhesives, resins, coatings, pharmaceuticals, and fuel blending. Its adoption as a marine fuel and cleaner-burning alternative to gasoline is gaining traction, especially in markets responding to environmental regulations. The introduction of renewable methanol production technologies, alongside increased methanol-to-olefin (MTO) and methanol-to-propylene (MTP) conversion capacities, reflects a shift toward more sustainable and versatile manufacturing processes, reinforcing methanol’s strategic industrial position.

Several external factors continue to shape methanol pricing and demand trends across regions. Crude oil price fluctuations influence methanol’s competitiveness as an alternative fuel, while geopolitical shifts, trade policies, and currency volatility affect supply chains and global trade flows. Regulatory support for eco-friendly fuels and growing environmental awareness are accelerating methanol adoption in automotive and marine sectors. Meanwhile, rising investment in methanol production capacity by major players is intensifying market competition. The expanding use of methanol in chemical synthesis and material processing, paired with ongoing research into more efficient feedstock utilization, is expected to further strengthen the industry’s long-term growth outlook.

Strategic Forecasting and Analysis:

IMARC’s report incorporates forecasting models that project near-term price movements based on evolving trade policies, raw material supply, and technological trends. These tools enable businesses to mitigate risk, enhance sourcing strategies, and support long-term planning.

Key Features of the Report:

Price Charts and Historical Data
FOB and CIF Spot Pricing
Regional Demand-Supply Assessments
Port-Level Price Analysis
Sector-Specific Demand and Supply Insights

Tantalum Prices Rise in 2025 as Critical Mineral Demand Intensifies

Speak to an Analyst

Get in Touch With Us

UNITED STATES

Phone: +1-201-971-6302

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: sales@imarcgroup.com

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

IMARC did an outstanding job in preparing our study. They were punctual and precise, delivering all the data we required in a clear and well-organized format. Their attention to detail and ability to meet deadlines was impressive, making them a reliable partner for our project.

I wanted to express my sincere appreciation for your efforts in handling this matter. Your dedication and commitment have truly been commendable. It is evident that you have put in a tremendous amount of hard work and expertise into resolving the issues at hand. I would also like to take this opportunity to inform you that we are greatly interested

Overall, the deliverable was well organized and my experience with the project team was good. In particular, I appreciated how they responded when I requested additional information and the Japanese version.

The IMARC team were extremely professional and very cooperative. The team were also extremely flexible in making changes and modifications wherever required. The entire experience right from project kick-off to after sales support was fruitful and smooth.

I’d like to express my gratitude for the work you accomplished with the industry report. The way you responded to the requirements and delivered under tight timelines shows your expertise, exceptional work ethic and commitment to your customer’s success. The entire team and company are incredibly thankful for your dedication. Once again, thank you

The market reports from IMARC have been instrumental in guiding our business strategies. We found the reports comprehensive and data-driven, which helped us make informed decisions. The detailed insights and actionable data have consistently provided us with a competitive edge in a rapidly changing alcohol market.

One of the best things about IMARC is their flexibility and predisposition to tailor the reports and adapt to our needs. They are not just great in their researching and consulting solutions, but their service is unparallelled. We’ve worked with them a couple of times and we will keep working with them in future projects.

We recently commissioned multiple market research reports from IMARC, and the insights we received were invaluable. The depth of analysis, accuracy of data, and actionable recommendations have greatly enhanced our strategic decision-making.

The market estimates provided by your team were pretty much in line with what we were theorizing internally. Really appreciate the work on this.

The sale account manager and the service was excellent. The data and market trends gathered from the report was insightful and really assisted while planning future product and growth strategies.

The report is excellent and has good amount of data and our team is extremely happy with the information provided.

Thank you very much for your cooperation and post purchase support. We were really happy with the final deliverable, and the takeaways from the report.