Monthly Advisory

Methanol

Methanol
Methanol

India's methanol production capacity is only about one-fifth of demand, so the market depends largely on imports, more than 90% of which come from the Middle East.

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Methanol demand in India comes mainly from producers of formaldehyde, acetic acid, methyl amine and chloromethane, with MTBE, DMT and pharmaceutical makers also buying. It is one of the major traded chemicals in the Indian market.

Indian methanol is made mostly from natural gas, so output depends heavily on the price gap between methanol and gas. Utilisation swings: an estimated 37% in 2024-25, against just 28% in 2023-24. India has room for investment in more than a million tonnes of capacity.

Because India relies so heavily on imports, domestic methanol prices move directly with international prices.

We offer unbiased insight into the methanol market. Our experienced team has contacts at every level of the industry, from manufacturing and supply to purchasing and policy, and our analysis will help you understand how the sector works.

Business Development
Anirudh Sharma
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