Chinese Methanol Futures Rally on Strong Industrial Sentiment

Olefin Sector Demand Recovery

Industrial production data from China has signaled a recovery in the chemical sector. Methanol is a vital feedstock for plastics and synthetic fibers, and as factory output stabilizes, demand has improved. This has allowed producers to reclaim losses from earlier in the quarter, anchoring the price above the 2,100 Yuan mark.

Port Inventory and Restocking Cycle

Port inventories in East China have shown a slight decline, indicating that domestic demand is successfully absorbing arrivals from the Middle East. Analysts suggest that the pre-Lunar New Year restocking cycle could provide further support to methanol prices in early January 2026 as manufacturers build up raw material buffers.