SunSirs: Low Inventory, China Methanol Market Rose in a Narrow Range

Due to the maintenance of some enterprises, the inventory in the mainland is not high, the supply of goods is tight, and the order volume increases. Recently, the domestic methanol market has risen in a narrow range. According to the monitoring of SunSirs, as of August 10-17, the average price of domestic methanol production enterprises in Shandong increased from 2,565 RMB/ ton to 2,567 RMB/ ton, with a price increase of 0.10% in the cycle, a price increase of 0.88% month on month and a year-on-year increase of 58.49%.

The methanol market in major regions in China mainly rose slightly in a narrow range. The main production enterprises in Northwest China raised the ex-factory quotation by about 50 RMB/ ton last week, which plays a positive guiding role in the whole domestic methanol market. The domestic methanol market was weak for a long time, traders and downstream were optimistic about the future, and the overall methanol market was strong.

In terms of downstream products, the formaldehyde market rose broadly. The market price of DME was adjusted in a narrow range, and the trading atmosphere was general. The regional fluctuation of domestic acetic acid market was obvious.

In terms of external market, as of the closing on August 16, the closing price of CFR Southeast Asia methanol market was $385.00-386.00/ ton. US Gulf methanol market closed at 133.00-134.00 cents/ gallon, up 4 cents/ gallon; The closing price of FOB Rotterdam methanol market was 420.00-421.00 euros/ ton, up 20 euros/ ton.

Recently, some units are planned to restart, and the supply in the mainland may increase. SunSirs methanol analysts expect that the short-term methanol market in China may be dominated by consolidation.