Chinese Methanol Futures Rally on Stronger Olefin Sector Consumption

Industrial Demand Recovery

The latest industrial production data from China has signaled a recovery in the chemical sector. Methanol is a key feedstock for a wide range of plastics and synthetic fibers. As factory output stabilizes, demand for methanol has improved, allowing producers to reclaim some of the losses suffered earlier in the quarter.

Port Inventory and Imports

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.