Geopolitical conflicts continue, leading to a tight supply-demand situation for methanol.

Sina Finance reported on March 31 that methanol prices fluctuated first in the first quarter and then saw an explosive rise, driven by geopolitical conflicts in the Middle East in March. Domestic production increased by 6.7% year-on-year, with imports peaking first and then decreasing, and it is expected to decrease to around 500,000 tons in March due to the conflicts. Coastal inventories rapidly decreased, while inland inventories peaked and then decreased. If the blockade of the Strait of Hormuz continues in the second quarter, imports will remain low, and the supply and demand will remain tight; if the situation eases, geopolitical premiums will fall, and there is a risk of prices returning from their highs.