Demand Falls Short of Expectation

In Oct, the demand for methanol did not pick up as expected. Operating rate of downstream plants especially for DME and DMF even dropped compared to the levels in end-Aug.

At the same time, suppliers from interior regions of China continued offering by tender, to reduce inventory, but some tenders were unsold, indicating intensified competition amid rising inventory. In addition, the market got impacted and market sentiment worsened by news that Nanjing Chengzhi and Tianjin Bohua cut MTO operating rates slightly.