China Methanol Prices to See Further Upside Potential
In August, China’s methanol prices moved sideways amid mixed sentiments. For September, mainstream methanol prices may continue to rise on expected supply reduction.
August saw a deadlock in the methanol market.
Overall, China’s methanol market was largely stalemated in August, but the price changes were slightly different in the inland market and coastal market. In Inner Mongolia, the monthly average price rose by over 5% M-O-M, while that in Shandong and Taicang only inched up by 1%-2%. The differences in cost, inventory and demand led to varied shifts in the pace of market trading and price adjustment.
Feedstock price growth backed up methanol ex-works prices.
In 2021, besides improved fundamentals, rising cost was always an important reason behind the uptrend of methanol price. In August, the average feedstock price gained over 50% from January and over 5% from July. Facing heavier cost pressure, methanol producers were not willing to sell at low prices.
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