China's coastal methanol-to-olefins (MTO) industry experienced widespread shutdowns in October 2026, as methanol supply constraints and rising feedstock costs affected production economics.
On October 19, Nanjing Chengzhi shut down its second MTO unit, following the shutdown of another unit on October 18.
The two facilities have a combined annual olefin production capacity of approximately 900,000 metric tons.
With these shutdowns, China's coastal MTO facilities relying on externally purchased methanol were reported to have suspended operations.
Methanol supply disruptions from the Middle East have been an important factor affecting the industry.
Shipping difficulties through the Strait of Hormuz have restricted methanol imports and increased transportation costs.
MTO technology converts methanol into light olefins, primarily ethylene and propylene, which serve as essential raw materials for polyethylene, polypropylene and other petrochemical products.
The shutdowns have reduced available olefin production capacity through the coastal MTO route.
Future operating decisions will depend on methanol availability, feedstock costs and plant economics.
The developments highlight the importance of feedstock security and production cost competitiveness in China's petrochemical industry.