China Methanol Price Notched a 10-Year High
China’s methanol prices have been rising continuously since September 2021. On the first working day of October, the methanol futures price surpassed RMB 3,900/mt, notching a record high after the methanol futures was listed in 2011.
September witnessed accelerated price growth in China’s methanol market.
Both spot and futures prices of methanol went up quickly in September. The futures price refreshed historic highs repeatedly and once broke through RMB 3,900/mt. Meanwhile, the spot price once climbed over RMB 4,000/mt in Henan and some other areas. As for the reasons behind the strong uptrend, on the one hand, favorable market fundamentals greatly backed up the market. On the other hand, cost changes and industrial value transmission were also important price drivers.
1. Methanol supply declined to a 14-month low.
In September, influenced by some unplanned production outages, China’s methanol industry operating rate fell to 64.6%, and the output was less than 5,700kt, which were the lowest operating rate and output since July 2020. In addition, the import volume was estimated at around 995kt in September, down 2.3% M-O-M and 19.83% Y-O-Y.
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