In the China domestic methanol market, operation rates of methanol producers stood at an average of 78.45% of capacity in March, down 1.87 points from the previous month. On the other hand, import volumes were reportedly at about 790,000mt in March. Stock levels were at around 390,600mt as of the end of March, down 193,700mt from the previous month. Stock levels at ports were low and some methanol plants in the country were halted for turnaround or because of troubles, which brought about perceptions of supply tightness.

From April onwards, some market players forecast supply to be ample. This is because supply of Iranian methanol is gradually improving and import volumes by China are on an uptrend. In addition, imported cargoes that had been scheduled to arrive in March are expected to be delivered in April because of bad weather. However, for domestic supply, production is anticipated to decrease since operation rates of methanol facilities are limited due to inspection of electricity facilities in spring.

On the demand side, several methanol to olefins (MTO) facilities are scheduled to undergo regular maintenance in April onwards and demand for methanol is on the decline. The market would likely be affected by operation status of MTO facilities in East China and movement of the international market going forward.