Methanol Prices – Historical Graph

Real-time chart of historical daily methanol prices. The prices are shown in ton.
The current price is and is last updated on .
  • The average price in the past 3 days is
  • The average price in the past 7 days is
  • The average price in the past 30 days is
  • The average price in the past 365 days is

Methanol Prices Explained

Methanol’s market price is subject to a diverse range of factors, leading to considerable variations based on geographical location and market dynamics. Here are some of the reasons why methanol prices fluctuate:

Why are methanol prices fluctuating?

1. Feedstock Costs

These feedstock costs are influenced by factors like accessibility, transportation expenses, and weather conditions. Additionally, methanol is primarily derived from natural gas, coal, or biomass. Any shift in the prices of these feedstocks impacts the overall production cost, consequently influencing methanol prices.

2. Market Demand

Methanol is used in a variety of industries, including the automotive, chemical, and energy sectors. The demand for this product within these sectors comes from economic conditions, government policies, and consumer choices.

Furthermore, it serves a broad spectrum of uses such as fuel blending and formaldehyde production to acetic acid production and solvent applications. Alterations in demand for these specific products directly influence methanol prices.

3. Production Costs

The cost to produce methanol includes expenses related to acquiring and processing feedstocks, energy costs for the conversion process, labor, capital investments, maintenance, and other operational expenses.

Energy is essential for methanol production processes like gasification, reforming, and synthesis, significantly influencing production costs. Additionally, fluctuations in energy prices directly influence the overall cost of producing methanol. Thus, affecting its market price.

4. Technological Advancement

Technological advancements such as renewable energy and the production of eco-friendly methanol have the potential to alter the market landscape by presenting more sustainable and cost-effective alternatives.

Thus, these initiatives affect both the demand for and supply, demand, and prices of methanol.

Which variables impact the price of methanol?

  • Feedstocks Costs
  • Market Demand
  • Production Costs
  • Technological Advancement
  • Regulatory Changes
  • Weather and Natural Disaster

Where does methanol come from?

Methanol is primarily produced from surplus coal and natural gas. It is used to produce Methyl Tertiary Butyl Ether, acetic acid, and formaldehyde which are essential in pressed wood products, disinfectants, and adhesives.

Additionally, methanol is typically produced through a chemical process known as methanol synthesis, where carbon monoxide and hydrogen are combined under specific conditions. These are the primary sources of methanol.

1. Natural Gas – The most common and economically viable method of producing methanol is through natural gas. This process involves converting methane into syngas, a mixture of hydrogen and carbon monoxide through a process called Steam Methane Reforming. The syngas is then converted into methanol.

2. Coal – Methanol is also produced from coal through a process called coal gasification. Coal is first gasified to produce syngas which is then transformed into methanol through catalytic reactions. However, this method is less common due to environmental concerns and the availability of cleaner and more efficient natural gas-based processes.

3. Biomass – Biomass, such as wood, agricultural residues, or other organic materials is converted into syngas through a process known as biomass gasification. The syngas is used to produce methanol through catalytic processes.

What is the future price of methanol?

Methanol is a commodity product that is utilized directly or employed to manufacture numerous range of specialty chemicals that find applications in various industry sectors like marine, construction, automotive, furniture, paints, and coatings.

The price trends for methanol are estimated to surge in the coming years as the demand from end-user industries is expected to rise and the global economic market conditions are expected to improve.

For instance, Singapore looks for reliable proposals from companies to supply methanol as a marine bunker fuel in the country from 2025. Thus, this new market prospect will fuel the commodity’s marketability.

Overall, methanol prices are forecasted to be between $400 and $600 per metric ton, according to multiple market research firms. This represents a significant increase from the current price of around $300 per metric ton.

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