China’s methanol market saw a strong upward trend after the National Day holiday. Coastal port inventories have remained at a low level, and the supply of tradable spot goods is tight. Several major domestic methanol plants entered maintenance before the holiday, which contracted the overall spot supply. Supported by raw material costs, downstream sectors including formaldehyde and MTBE have started rigid restocking, pushing methanol prices higher. Market participants expect methanol prices to maintain strong volatile performance in the short term.

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While the market enjoys bullish momentum, market watchers also remind buyers to track changes in port inventory and maintenance schedules of methanol plants. Any recovery of halted production units may ease the supply pressure and bring price volatility. Downstream enterprises are suggested to arrange purchasing plans reasonably according to their actual production demand.