Methanol plays a crucial role in a wide range of industries, from fuel blending and formaldehyde production to the manufacturing of paints, adhesives, and plastics. Because it’s such an essential feedstock in both the petrochemical and energy sectors, even small price changes can ripple across multiple industries, raising manufacturing costs and affecting end-product pricing.
In the past week, methanol prices in India have spiked by Rs. 6 per kg, largely due to escalating tensions in the Middle East. Most of Iran’s methanol facilities are now either shut down or running at minimal capacity.
A key trigger for the latest price jump was a reported drone strike on Iran’s South Pars gas field in Kangan (Bushehr province) on 14th June 2025. Allegedly carried out by Israel, the attack severely disrupted methanol shipments from Iran, a country that supplies over 30 percent of India’s methanol imports.
With this major supply route under pressure, the global petrochemical market is feeling the heat, and Indian buyers are scrambling to secure inventory, anticipating deeper shortages in July.
While this disruption poses challenges for many downstream industries, it also opens up an opportunity for some. With Iranian supply tightening and global prices rising, domestic producers may benefit as local buyers seek alternatives. Higher prices may allow these producers to improve margins if they can ramp up capacity or hold inventory bought at lower prices.
Following are a few chemical stocks to benefit as methanol prices surge amid Iran-Israel tension:
Gujarat Narmada Valley Fertilisers & Chemicals Limited
With a market cap of Rs. 7,909.8 crores, the stock moved up by around 2 percent on BSE to Rs. 539.2 on Tuesday. The company is one of India’s leading entities engaged in the manufacturing and selling of fertilisers, industrial chemical products and providing IT services. GNFC is India’s only manufacturer of Glacial Acetic acid through the cutting-edge Methanol Carbonylation route.
The company’s industrial chemical product basket consists of chemicals such as Methanol, Acetic Acid, Toluene Diisocyanate (TDI), Aniline, Nitric Acid, Ethyl Acetate, Methyl Formate, Ammonium Nitrate (Melt), Technical Grade Urea, and many more. As of Q4 FY25, GNFC has 3 methanol plants with a total installed capacity of 269 KTPA.
Rashtriya Chemicals & Fertilizers Limited
With a market cap of Rs. 8,664 crores, the stock moved up by around 4 percent on BSE to Rs. 159.6 on Tuesday. Rashtriya Chemicals & Fertilisers Limited (RCF) is a public sector undertaking (PSU) with 75 percent stake owned by the Government of India, and is engaged in the manufacturing and marketing of fertilisers and industrial chemicals.
The company produces two main categories of products: fertilisers, including Urea (Trombay and Thal), and various complex fertilisers and industrial chemicals, such as methanol, concentrated nitric acid, ammonium bicarbonate, and others.
Deepak Fertilisers and Petrochemicals Corporation Limited
With a market cap of Rs. 19,819.3 crores, the stock moved up by around 3 percent on BSE to Rs. 1,598 on Tuesday. Deepak Fertilisers is primarily engaged in the business of manufacturing, trading, and sale of bulk chemicals. It also has operations in value-added real estate. In FY24, DFPCL introduced ‘PUROSOLV’, a brand for Pharmacopoeia grade IPA and other solvents (methanol, acetone and MDC) which are being used in the pharma industry. As of FY25, the company has an installed capability of 100 KTPA of methanol annually, with the facility located in Taloja, Maharashtra.
Written by Shivani Singh
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