Methanol Futures Prices Hit a 3-Year High
On September 8, 2021, the price of methanol dominant contract closed at RMB 3,059/mt, the highest since October 2018. In 2021, China’s methanol market showed an overall uptrend, mainly underpinned by the cost and supply sides.
Methanol prices rallied gradually after falling to a record low.
Looking back the past three years, China’s methanol market showed a“V”-shape movement on the whole. After hitting a historic record of RMB 3,500/mt in October 2018, methanol prices began to drop quickly, as high methanol prices squeezed the profits of downstream products. In particular, MTO plants suffered obvious profit losses, so some MTO plants in East China began to cut loads, followed by declines in methanol demand. In 2019, loose supply further weighed down methanol prices. In H1, 2020, methanol demand was dragged down the public heath event, and its prices fell to a historic low level accordingly.
In H2, 2020, downstream consumption recovered gradually with China’s effective prevention on the pandemic, and China’s methanol prices bottomed out. In 2021, methanol prices kept rising on continuous cost and supply support, breaking through RMB 3,000/mt again after nearly 3 years.
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