Methanol Futures Drift Lower on Pre Holiday Activity Pause

Industrial Demand and MTO

While Methanol-to-Olefins (MTO) plants have maintained steady utilization recently, the lack of fresh spot demand ahead of the Lunar New Year is weighing on benchmarks. Prices are expected to remain in a narrow range until activity resumes in late February.

Global Surplus Pressures

Beyond seasonal factors, a projected increase in global methanol capacity for 2026 is acting as a long-term ceiling for prices. Competitive pricing from Middle Eastern producers continues to reach Asian ports, challenging domestic mill margins.