Methanol Prices Hold Firm as Energy Complex Rallies

Energy Sector Correlation

Methanol prices are currently benefiting from the strength in global energy markets. With WTI and Brent crude rallying over 2% to start the week, the cost support for energy-derived chemicals has firmed. This external bullish pressure is helping Methanol hold the 2,100 Yuan level despite a lack of aggressive buying in the physical spot market.

Industrial Inventory Outlook

Domestically, inventory levels at major Chinese ports remain adequate, which is capping any runaway price inflation. However, the market is eyeing the pre-Lunar New Year restocking period expected in January 2026. Analysts believe that steady demand from the Methanol-to-Olefins (MTO) sector will continue to provide a stable price floor in the near term.