Global Methanol Prices Climb; China's Reliance on Iranian Methanol in Focus

The Hormuz crisis and the US-Iran war have also caught up the methanol and petrochemical market. Industry reports through mid-July 2026 say higher freight, insurance and feedstock costs have lifted prices for methanol, sulfur and polymers, leaving import-dependent buyers with longer lead times.

China sources more than 50% of its methanol from Iran, so any disruption to Iranian exports has a direct effect on the global market. According to these reports, non-sanctioned shipowners are refusing to carry Iranian-origin cargoes over fears of sanctions and blocked payments, a factor that could keep region-origin chemical prices elevated through the second half of 2026. Methanol is a major item in Iran's petrochemical exports.