As a result, methanol prices in India have surged to around ₹40/kg, up sharply from approximately ₹28-29/kg, with the potential to rise further amid global supply disruptions. Iran, being one of the major methanol suppliers to Asia, faces increasing trade barriers that are likely to constrain availability in the Indian market.
US sanctions on Iranian petroleum trade have disrupted methanol supply chains, driving Indian methanol prices to around ₹40/kg from ₹28-29/kg.
With Iran as a major Asian supplier, tighter restrictions are straining availability and inflating costs across derivatives like acetic acid, formaldehyde, MTBE, and VAM, squeezing margins across downstream chemical industries.
The main downstream products of methanol including formaldehyde, acetic acid, methyl tertiary butyl ether (MTBE), dimethyl ether (DME), biodiesel, and methanol-to-olefins (MTO), vinyl acetate monomer (VAM) and other derivatives are expected to experience cost escalations and tighter margins. Derivatives within these chains, such as VAM, acetic anhydride, and olefin-based polymers (e.g., polyethylene, polypropylene) and others, are also likely to witness price increases due to higher feedstock costs.
ALCHEMPro News Desk (VK)
