In the China methanol market, sentiment is bearish amid perceptions of slack supply/demand. The low demand season for derivatives started and makers of derivatives including MTBE lowered their operation rates in the wake of deteriorating profitability. Under such circumstances, derivative markers are wary of procuring feedstock methanol.

Meanwhile, methanol plants are generating profit at present and keeping their operation rates high. In addition, many imported cargoes are arriving and inventories are built at ports. As a result, supply is perceived to be ample.

In the derivative market, methanol-to-olefin（MTO）facilities, which underwent turnaround, restarted one after another and production of olefins including propylene is recovering. On the other hand, few polypropylene (powder grade) facilities are undergoing maintenance recently and supply is ample. Meanwhile, with demand not strong, PP makers have scarce buying interest for propylene.

Market players are paying attention to the restart status of methanol facilities under maintenance. Further, the procurement situation by petrochemical makers with MTO facilities is also drawing attention.