India methanol prices reach 6-month low in Feb on demand slump, healthy supply

Indian methanol prices have dropped to six-month lows as of Feb. 18, Platts data showed, as domestic inquiries dwindle, leading to reduced port lifting and mounting selling pressure, according to several trade sources.

CFR India methanol prices hit their lowest since August 2025, with trade discussions heard in the range of $290-$295/mt for cargoes arriving in the first half of March, according to data from Platts, part of S&P Global Energy.

Platts assessed CFR India methanol at $295.50/mt on Feb. 18, down $5.50/mt day over day, reaching its lowest level after Aug. 12, 2025, when it was observed at $294/mt CFR India.

"There is enough cargo available for March, and India is well supplied for at least a month with consistent arrivals expected from the non-sanctioned Middle East producers," said a Dubai-based trader.

Buyers were shying away from prompt purchases due to slow downstream consumption and the looming risk of additional demurrage amid longer waiting times at several Indian ports, a seller said.

Ullage, storage issues

Several market participants have complained about ullage issues and berthing delays at West Coast India ports. The average ship waiting time at Kandla port was heard to be about six to eight days at Kandla and one to two days at Mumbai port, market sources said.

"No one wants to buy any immediate loading cargoes. India has a huge inventory! A vessel from the Middle East has been rerouted from Kandla to Hazira and JNPT to avoid additional demurrage costs. There is a selling pressure in the domestic market as there is hardly any storage at ports," said a Mumbai-based trader.

"[A refiner] has booked a large tank space for over two months at Kandla port, leading to ullage issues for liquid chemicals at the port," a Mumbai-based importer said.

Spot offers were heard for prompt loading cargoes as traders struggled to find any buyers. "We are still hearing February-loading offers. No one wants to buy immediate cargoes because there is no space to discharge them," an importer said.

Fresh supplies

While India is hardly buying any spot cargoes from Iran, following the US sanctions on Indian entities dealing in Iranian methanol, importers are eyeing potential open arbitrage opportunities from countries outside the Middle East to diversify their sources.

With at least 8-10 methanol ships from Iran in a month before July 2025, the ship count dropped to 0-2/month between November and February, market sources shared.

At least four Russian cargoes were heard to have arrived at Indian ports over December 2025-February 2026.

Additionally, spot cargoes moved from Malaysia to the West Coast of India during November-January, shipping data from market sources showed. The Malaysian methanol producer Petronas Chemicals Marketing (Labuan) last sold about 20,000 mt H2 January-loading methanol to India.

Slow downstream buying

A sharp slump in domestic inquiries from the downstream formaldehyde and MDF board segment has led to reduced port lifting and muted inquiries since mid-January. Several market sources called the demand slump "unseasonal" and "unexpected."

"We usually witness a good demand in January-February months, but this year it's unusual," said an end-user. "We are cutting our profits to sell the material, but there is no demand. Our usual daily sales of formalin are about 150 mt/day, but we are facing difficulty in selling even 100 mt/d this time. The demand for phenol-formaldehyde resins is also low," lamented a downstream formaldehyde producer said.

A downstream paraformaldehyde plant in Mumbai was also heard operating at a reduced rate, leading to thin demand from the end-user, an importer said.

"We heard there is a cash flow issue in the downstream markets, leading to panic selling in the domestic market," a Delhi-based importer said. "Small-scale formalin producers have cash flow issues; the larger ones have their dedicated customers."

"Methanol demand from our plants in the East and South India is as usual, but the West is weak, due to ample supply available. Several new formaldehyde producers have come up in the West, hence there is ample supply," another downstream producer said.

Methanol inventory at Kandla port was hovering around 99,000 mt on Feb. 15, nearly stable over the early February record. Inventories at Hazira and Mumbai ports were also heard to be healthy, with limited tank space available, according to Indian traders.

"Product lifting from tanks at all ports has dipped by almost 40%. There is a sharp drop in demand from the formaldehyde segment, which is the largest methanol-consuming segment in India. There are no buyers in the market, and the market will be experiencing a period of rough few weeks from now," said a Mumbai-based importer.

Platts-assessed India domestic ex-tank methanol prices also hit a six-month low at Rupees 28.74/kg Feb. 18, after nearly six months since Aug. 18, when the prices were assessed at Rupees 29/kg. Several methanol buy auctions for key formalin producers in India, concluded below Rupees 29/kg in the week starting Feb. 16, Platts data showed.