Methanol price index

Methanol price October 2024 and outlook (see chart below)

• North America:US$0.43/KG, unchanged
• Europe:US$0.43/KG, unchanged
• Africa:US$0.32/KG, 6.7% up
• Northeast Asia:US$0.36/KG, unchanged
• Southeast Asia:US$0.33/KG, -2.9% down
• South America:US$0.38/KG, 2.7% up
• Middle East:US$0.41/KG, -2.4% down

Methanol news update

Methanol China price index

This post is a summary of the Methanol (methyl alcohol)  price developments. The price developments of Methanol are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Methanol price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Methanol (methyl alcohol) prices, on the second tab, is generated from different inputs including:

• Very recent price developments of immediate cost drivers of Methanol prices
• Recent price developments of underlying feedstocks which drive the price of Methanol
• Market futures for both cost drives and feedstocks of Methanol prices
• Adjustment of current supply/demand imbalances in the Methyl alcohol market
• Longer term trends in likely demand conditions

Further information on the Methanol price chart

What is Methanol

Methanol is a colorless, flammable liquid with the chemical formula CH3OH. It is the simplest alcohol, consisting of a methyl group (CH3) linked to a hydroxyl group (OH). Methanol is a highly versatile chemical that is used in a wide range of industrial applications, including the production of formaldehyde, acetic acid, and other chemicals. It is also used as a solvent, fuel, and antifreeze. Methanol can be produced from a variety of feedstocks, including natural gas, coal, biomass, and carbon dioxide. However, the most common method for producing methanol is from natural gas through a process called steam methane reforming.

How is methanol produced

Methanol is typically produced from natural gas, although it can also be produced from other feedstocks such as coal, biomass, or carbon dioxide. The most common method for producing methanol from natural gas is through a process called steam methane reforming, which involves the following steps:

Conversion of natural gas to synthesis gas

In this step, natural gas is reacted with steam and oxygen in the presence of a catalyst to produce synthesis gas, which is a mixture of hydrogen (H2), carbon monoxide (CO), and carbon dioxide (CO2).

Conversion of synthesis gas to methanol

In this step, the synthesis gas is reacted over a catalyst, typically a copper-based catalyst, to produce methanol. The reaction takes place in a reactor at high temperature and pressure.

Purification

The crude methanol that is produced in the reactor is typically purified through a series of distillation and filtration steps to remove impurities and byproducts.

Other methods for producing methanol from alternative feedstocks involve different processes, but they typically involve some form of gasification or carbon monoxide production, followed by conversion to methanol using a suitable catalyst.

What drives the cost of methanol

The cost of methanol is primarily driven by the cost of feedstocks used in its production, which include natural gas, coal, and biomass.

The prices of these feedstocks are influenced by a number of factors, including global supply and demand, energy prices, and geopolitical events.

In addition to feedstock costs, the cost of producing methanol is also influenced by factors such as energy costs, labor costs, transportation costs, and capital investment required for plant construction and operation.

Finally, the market demand for methanol and the competition among methanol producers can also influence its cost. The demand for methanol is driven by a wide range of industrial and commercial applications, including formaldehyde production, fuel blending, and use in the production of a variety of chemicals. The level of competition among methanol producers can also impact its cost, as producers seek to gain market share through lower costs and higher efficiency.

What is methanol used for

Methanol is a highly versatile chemical that is used in a wide range of industrial and commercial applications, including:

Formaldehyde production

Methanol is a key feedstock for the production of formaldehyde, which is used in the production of a wide range of resins, plastics, and textiles.

Fuel blending

Methanol is used as a fuel additive, primarily in gasoline blends. It can also be used as a standalone fuel in some applications, such as racing cars and fuel cells.

Chemical production

Methanol is used as a feedstock in the production of a wide range of chemicals, including acetic acid, methyl tert-butyl ether (MTBE), and formaldehyde.

Solvent

Methanol is a common solvent used in a wide range of industrial applications, including paint, varnish, and ink production.

Antifreeze

Methanol is used as an antifreeze in a variety of applications, including automotive cooling systems and as a deicing agent for airplane wings.

Other applications

Methanol is also used in a variety of other applications, including as a denaturant for ethanol, as a disinfectant, and as a feedstock for biodiesel production.

What are the key characteristics of methanol

Methanol, also known as methyl alcohol, has several key industrial properties, including:

Solvent properties

Methanol is a good solvent for many organic compounds and is commonly used as a solvent in industrial processes, such as in the production of formaldehyde.

Reactivity

Methanol is highly reactive and can be used as a feedstock for the production of various chemicals, including formaldehyde, acetic acid, and methyl tert-butyl ether (MTBE).

Flammability

Methanol is highly flammable and can be used as a fuel in internal combustion engines or as a feedstock for the production of biodiesel.

Toxicity

Methanol is toxic and can cause serious health effects if ingested or inhaled in high concentrations. Proper safety measures must be taken when handling and using methanol in industrial settings.

Low freezing point

Methanol has a low freezing point and can be used as an antifreeze in various industrial applications, such as in the production of fuel and solvents.

Which countries produce the most methanol

The countries that produce the most methanol vary from year to year, but generally the largest producers include China, the United States, Iran, Saudi Arabia, Trinidad and Tobago, and Russia. Other significant producers include Malaysia, Venezuela, and Indonesia. The production and export of methanol can be influenced by a variety of factors, including global demand for the chemical and the availability of low-cost feedstocks such as natural gas.

How big is the global methanol market

The global methanol market was valued at approximately USD 30.1 billion in 2020 and is expected to reach USD 39.5 billion by 2027, growing at a compound annual growth rate (CAGR) of 3.7% from 2021 to 2027.

According to https://oec.world/ :

Methyl alcohol are the world’s 375th most traded product.

In 2020, the top exporters of Methyl alcohol were Saudi Arabia ($1.02B), Trinidad and Tobago ($916M), United States ($792M), Oman ($746M), and United Arab Emirates ($544M).

In 2020, the top importers of Methyl alcohol were China ($2.36B), South Korea ($638M), United States ($544M), India ($449M), and Germany ($346M).

Further information

• Wikipedia for general, history, production and usage information
• PubChem for chemistry and property  information