Methanol Futures Consolidate as Chinese Industrial Activity Firms

Feedstock Cost Floor

The production of methanol remains tightly coupled with coal and natural gas prices in China. As domestic energy markets stabilize, the cost floor for methanol has firmed, preventing prices from following the steep decline seen in the crude oil complex.

Downstream Demand Balance

While the oversupply of plastics globally is a concern, immediate demand for industrial feedstocks in East China remains healthy. MTO plant utilization rates have stayed resilient, providing a reliable consumption outlet as factories prepare for the Lunar New Year.