Methanol demand faces headwinds, with price trends leaning bearish.

ChemPriceHub, November 4

Methanol-to-Olefins (MTO) accounts for nearly half of China’s total methanol demand. Following a rapid surge in spot methanol prices earlier, the theoretical losses for coastal MTO producers relying on externally sourced methanol have continued to widen. As a result, multiple plants—including Ningbo Fude, Nanjing Chengzhi, Luxi, Sierbang, and Lianhong Gerun—have either shut down or reduced operating rates. Market consensus suggests that large-scale restarts are unlikely in the short term, directly dampening port-side purchasing activity. This has led to an increase in failed spot auctions and a gradual weakening and decline in basis levels.