Chemical Updates

Asian Methanol: Sentiment bearish on rising supply in China, Middle East tensions / China’s inventories rise after shipments arrive / Upcoming shutdown prompts bullish Sep indications

Aug 03, 2026

The Asian methanol markets saw largely bearish sentiment in the week ended July 31, as fluctuating domestic Chinese prices and rising inventories led to concerns of excess supply in China. China’s domestic methanol markets fluctuated in line with futures prices during the week, which were impacted by volatile crude markets, several sources said. The bearish sentiment was also fueled by a rise in Chinese inventory levels following the arrival of previous shipments, reported earlier. As a result, there was low import appetite, with limited active bidding seen during the week as buyers expressed a lack of buying urgency, particularly as the ongoing tensions in the Middle East could mean further disruptions surrounding methanol exports from the region. Demand from the methanol-to-olefins sector was also low, as several plants in China...

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