China methanol prices and production margins both hit 5-year highs

China's methanol prices and production margins have both hit five-year highs, with Taicang spot at Yuan 3,795/t and Ordos North Line at Yuan 3,595/t on September 10. Inner Mongolia coal-based methanol weekly margins jumped 82.21% week-on-week to Yuan 534.8/t. Coke oven gas-based methanol saw the strongest profits gain, while natural gas-based methanol margins rose modestly.

China's methanol prices and production margins both surged to five-year highs this week, driven by the closure of the Strait of Hormuz and intensive domestic unit maintenance that tightened supply. A total of 10.67 million t/y of methanol capacity underwent maintenance this week, with daily output losses reading 30,180 tonnes.