Methanol Prices Rise on Stronger Chinese Industrial Sentiment

Industrial Demand and MTO Sector

Methanol is a key feedstock for the production of plastics and synthetic materials. The recent improvement in Chinese industrial production data has signaled that downstream demand is picking up. MTO plants, which consume vast quantities of methanol, are maintaining high operating rates, which is tightening the immediate physical market and allowing producers to push for higher prices.

Global Supply Chain and Feedstock Costs

While the local market is strong, global supply chains remain efficient. The relative stability of natural gas prices—the primary feedstock for methanol—is helping producers maintain profitable margins even as prices rise. Analysts expect the current upward trend to continue through the end of the year, provided that Chinese manufacturing data remains on its current growth trajectory.