China Methanol Market Shows Divergence Between Inland and Port Prices

Port vs. Inland Dynamics

A widening divergence has emerged in the second half of December between China's inland and port methanol markets. While port prices have faced pressure from high import volumes earlier in the month, inland prices have remained resilient due to local logistical constraints and steady demand from coal-to-chemical plants. This dynamic is creating arbitrage opportunities for domestic traders.

Inventory and Outlook

After a period of inventory buildup, port inventories saw a slight drawdown this week due to weather-related shipping suspensions in East China. Market participants are now focused on the pre-Lunar New Year restocking cycle, which is expected to begin in early January 2026. This potential demand boost is helping to keep the futures price anchored above the 2,100 Yuan mark.