November China Methanol Market Price to Fluctuate Upwards
China’s methanol market showed an inverted “V”-shape movement in October, with the prices rising quickly in H1 October but fluctuating downwards in H2 October. Up to October 30, the price of dominant contract MA2101 closed at RMB 2,013/mt, up 1.67% from early October. The spot price was RMB 1,917/mt in Taicang, up 3.44% from early October. For November, the market is amid mixed sentiments, but the mainstream prices are still likely to move up from the aspects of macro-environment, supply-demand fundamentals, cost, price trend, etc.
The first half of October saw increases in both the methanol futures and spot prices. On the one hand, the import volume was expected to decrease due to the maintenance of some foreign methanol units during the National Day holiday. On the other hand, the demand recovery in Shandong boosted the market sentiment to some extent. Meanwhile, the spot sales were smooth on the restocking demand from some downstream plants after the holiday. Thus, the methanol prices rose actively. In the second half of October, with the restocking demand weakening and downstream resistance to high methanol prices, the spot prices began to soften, and the futures prices also started to fall back amid the inventory buildup at ports. However, the prices were still slightly higher from early October.
