Global methanol markets have reeled in the wake of the war in Iran, with prices in India reaching an over-four-year high on acute supply concerns, while Southeast Asia prices hit all-time highs.In the Atlantic Basin, European spot prices have risen about 47% since the war started Feb. 28, despite unchanged fundamentals and minimal reliance on Middle East imports, while US prices rose only 18%, on a surge in spot liquidity.The effective blockage of the Strait of Hormuz caused by the war has dramatically reduced global trade flows of crude, naphtha, and petrochemical feedstocks, with an estimated 18% of global methanol capacity affected, according to S&P Global Energy CERA data.

Southeast Asia methanol prices saw the sharpest escalation in Asia, as Saudi Arabia and Qatar, key methanol exporters to Asia, have been unable to move cargoes eastward.Local supply was further tightened by concurrent plant outages and production issues across Southeast Asia.Prices in the region are the highest globally, Platts data shows. Prior to Feb. 28, Southeast Asia methanol values remained in $315-$325/mt range since August 2025, according to Platts data.

Chinese prices have also risen sharply, up 46.5% since Feb. 28 to $381/mt on March 20. The prices were last higher April 8, 2022, when they hit $390/mt, according to Platts data.Traders said China is less exposed to war impacts than Southeast Asia, South Korea, or Taiwan, as local buyers have access to millions of metric tons in stocks, which participants say could cover at least eight weeks of demand. Additionally, at least three ships carrying methanol from Iran are en route to China, traders say.With the Southeast Asia-China spread widening to $174/mt, the arbitrage into Southeast Asia has swung open.Taiwan and South Korean prices have also risen amid supply concerns, with prices in South Korea hitting a 53-week high on March 13 and prices in Taiwan hitting the highest level in four and a half years, according to Platts data.Indian methanol prices hit an over-four-year high on March 16 amid uncertain supply, following the announcement of a force majeure on shipments from Qatar and uncertainty around scheduled arrivals from Saudi Arabia and Bahrain.With shipments almost halted from the rest of the Middle East – the majority supplier of methanol to India in 2025 -- participants looked to secure any spot cargoes available from Oman and elsewhere that supported spot prices.

Meanwhile, in the domestic market, ex-tank prices also rose almost 60% from the start of the war amid ongoing supply disruptions. However, in the second half of March, healthy port inventories and selling activity pressured prices.Platts assessed CFR India methanol at $500/mt on March 20, the highest level since Oct. 27, 2021, Platts data showed.