Last week, the domestic methanol market experienced a surge. Tight natural gas supplies in the main Middle Eastern markets led to the shutdown of several methanol production facilities, resulting in expectations of a decrease in methanol imports. Consequently, the market’s circulating supply will gradually diminish. Foreign market prices fueled a sharp rise in the coastal market, and inquiries and external purchases from some downstream industries further strengthened the methanol market in the hinterland.
After the midpoint of last week, some bearish news emerged, coupled with downstream resistance to high prices, which led to insufficient upward momentum and a weakening market sentiment. However, prices remained high and stable, supported by the positive fundamentals outlook.
This week, inland factories have continuous shipment demands, while port imports continue to decline, potentially resulting in stable-to-declining inventories. The market’s circulating supply is expected to decrease, and methanol market prices may trend towards strength.
