Methanol Stability Continues Amidst Tight Asian Supply and MTO Demand

Regional Price Premium

The Asian market is currently demanding a premium due to restricted supply flow, caused by logistical delays and plant turnarounds. This has forced buyers to actively source spot cargoes, providing underlying support to the price despite a generally weak global energy complex.

MTO Consumption Strength

The stability of methanol prices is heavily reliant on the MTO sector, which converts methanol into key plastics components. High operating rates at these Chinese facilities ensure that a large volume of methanol is consumed, acting as a reliable demand floor.

Feedstock Cost Pressure

The cost of methanol production is being pushed higher by firm prices for natural gas and coal feedstock, particularly in Asia. This rising input cost supports the current high selling price, as producers resist reducing offers to protect margins.