China Methanol Market Sees Supply Glut from Imports and Domestic Restarts

Key Highlights: 

• Methanol values decreased by *.**, pressured by oversupply and soft downstream demand. 
• Methanol imports from the Middle East (Saudi Arabia, UAE, Oman, Iran) surged **.** in Q* vs Q*, continuing into Q*.
• Iranian shipments to China increased following U.S. sanctions on Indian firms, adding to supply pressure.
• Domestic production recovered, with multiple facilities restarting and boosting capacity utilization.
• Market outlook remains weak, with expectations of continued price fluctuations and consolidation through September.

Supply Pressure Intensifies with Surging Imports 

The increase in methanol imports from the Middle East was a significant contributor to the supply surplus. Shipments mainly from Saudi Arabia, UAE, Oman, and Iran surged by **.** in Q* over Q*, and the oversupply conditions persisted into Q*. The situation was aggravated when Iranian methanol began flowing to China, following U.S. sanctions against six Indian firms on July...