MethanolSpot market sentiment remains steady, with most prices consolidating. Coastal regions saw a slight softening in price levels, while the inland market remained largely stable with minor fluctuations. Recently, the inland methanol market has performed slightly better than the coastal market, narrowing cross-regional price spreads. Major production enterprises in Northwest China maintained their quoted prices; with manageable inventory pressure, some orders were negotiated at higher levels. Reference trading terms for the northern line of Inner Mongolia are as follows:2340-2390 yuan/ton; South Line region negotiations reference 2310-2320 yuan/ton.
Upstream coal supply and demand have slightly weakened. Major mines continue normal production, with port coal inflows remaining at high levels. With the easing of restrictions on Australian coal imports, import volumes are expected to rise, ensuring ample overall supply. As temperatures rise and the heating season concludes, thermal power plants face limited market coal demand, while non-power sectors mostly procure based on immediate needs, offering limited support from the demand side. Coal market trends remain under pressure, with prices experiencing narrow fluctuations. Consequently, methanol costs show little change, leaving companies facing continued production pressures. Recently, a decline in freight rates has reduced methanol delivery costs. While holders maintain firm quotes, actual transaction centers have softened.
The pace of methanol industry restarts remains slow, and supply pressure stays low. Operating loads in Northwest, North China, and Central China have seen slight increases, with the methanol utilization rate rising to68.73%, down 3.31 percentage points year-over-year. The operating rate in the Northwest region was 77.10%, significantly lower than last year's level. Several production units remain shut down with no restart plans yet. Mid-to-late 3 will see a mix of maintenance and restarts, so the operating rate is expected to change little. Methanol monthly output will stay at low levels. Profit distribution across the methanol value chain remains uneven, with limited downstream profitability.
Activity in downstream industries remained largely unchanged, with procurement continuing at a steady pace to meet essential demand. Most coal-to-olefin facilities operated steadily, resulting in an overall capacity utilization rate of77.33%, showing little change compared to the previous period. Traditional demand sectors remain sluggish; aside from a narrow increase in formaldehyde production, other sectors experienced varying declines in operating rates, resulting in negligible growth in methanol consumption. Coastal inventory rose slightly to 74.36 million tons, remaining marginally below last year's level of 1.12%. Overseas production capacity utilization increased, leading to higher market supply and a downward trend in global prices. Recent port diversions continue frequently, with no significant surge in import volumes. Consequently, coastal inventory remains low and fluctuates within a narrow range.