China Methanol Futures Stabilize as Energy Costs Soften

Industrial Restocking

Demand from the Methanol-to-Olefins (MTO) sector in China is showing signs of recovery as factories build inventories ahead of the Lunar New Year break. This restocking cycle is providing a temporary floor for prices.

Feedstock Cost Floor

Stable domestic coal prices in China are providing a firm cost base for methanol producers. Analysts expect range-bound price action in the first quarter as the industry manages high global capacity levels.