China Methanol Price Hit a Yearly High
On December 11, 2020, the price of methanol dominant contract rose quickly after the open, and the daily price rise surpassed 5%. The highest price reached RMB 2,442/mt, hitting a new high in 2020.
The key support for the recent methanol price rise is the continuously tightening supply at home and abroad. In foreign countries, some methanol units in the Middle East are expected to run at lower loads or be shut down for maintenance from December 2020 to January 2021, which is mainly influenced by the restriction on natural gas supply. In China, some methanol units in Henan, Shanxi, Shaanxi and Southwest China are also facing similar situations. On the one hand, the domestic natural gas supply is tight. On the other hand, the treatment of air pollution curbs the operating rate. As a result, the methanol output is reduced.
