Methanol Futures Consolidate Near Four Week High in China

Coal Feedstock and Margin Support

Methanol production in China, which is heavily coal-based, is finding cost support as domestic coal prices firm up for the winter season. This has improved the price floor for methanol, while the Methanol-to-Olefins (MTO) sector has maintained high operating rates to satisfy downstream plastics demand before the holiday lull.

Regional Supply and US Pressure

There is growing concern about supply disruptions from Iran and Venezuela due to increased diplomatic and economic pressure from the US. This uncertainty has led to an uptick in demand for prompt-month cargoes in the Asian market. Analysts at ICIS expect a volatile January as the market balances these geopolitical risks against global oversupply.