SunSirs: Methanol Market Rises in a Narrow Range

Last week, the domestic methanol market rose in a narrow range. According to the price monitoring of SunSirs, at the beginning of the week, the domestic methanol market price was 1,605 RMB/ ton, and at the end of the week, the domestic methanol market price was 1,617 RMB/ ton, up 0.78% in the week. Compared with the same period last month, the price fell 2.41% month on month and 27.53% year-on-year.

The domestic methanol price is at a historical low, the profits of coal and LNG enterprises are not good, and the cost surface has certain support; the crude oil rose to a high in nearly three months, and the crude oil continued to rise under the expectation of the extension of the production reduction agreement, which is good for the methanol market. In the first ten days of June, the production of parking devices increased, the output of Baofeng 2.2 million tons and Anhui Linquan 300,000 tons methanol new devices gradually increased in the later period, and the pressure of methanol supply was large; in the middle of June, the arrival plan of imported ships was relatively centralized, and the risk of high storage in the port was still accumulated; the traditional downstream industries such as methylaldehyde and DME entered the off-season in the later period, and the demand was expected to decline.

The domestic methanol price is at a historical low, the profits of coal and natural gas enterprises are not good, and the cost surface has certain support; the crude oil rose to a high in nearly three months, and the crude oil continued to rise under the expectation of the extension of the production reduction agreement, which is good for the methanol market. In the first ten days of June, the production of the parking device resumed to increase, and the pressure of methanol supply was great; in the middle of June, the arrival plan of imported ships was relatively concentrated, and the risk of high storage in the port was still accumulated; the traditional downstream formaldehyde, DME and other industries entered the off-season later, and the demand was expected to decline.

Formaldehyde: last week, the domestic formaldehyde market was sluggish. Methanol in the upper reaches of Anhui Province was affected by the low price of the port, and Anhui raw materials fell. Affected by this, the warehouse of formaldehyde products in the local area declined broadly; the price of methanol in the upper reaches of Shandong Province rose slightly within a week due to the rising freight, and the cost rose.

Acetic acid: the domestic acetic acid market fell sharply last week. During the last weekend, Jiangsu Thorpe and Hebei Jiantao acetic acid plants were restored one after another, and traders were actively selling goods in the early stage, pushing the market transaction prices down one after another, and the market was passive and weak.

DME: last week, the domestic market for DME was light and the overall price was stable. There was no significant price adjustment in most of the weeks. At present, it is in the civil off-season, and the pressure of LPG delivery is large. However, due to the continuous rise of crude oil price last week, the price of LPG has formed a good support, and the civil price has increased significantly, but the terminal demand has slightly resisted, the transaction situation is general, and the market of DME is limited.

In June, the domestic methanol import volume will remain at a high level. In the middle of June, the plan for the arrival of imported cargo to the port was relatively centralized, and there was still a risk of accumulation in the port's high inventory. At present, most of the methanol enterprises are in a loss state, with a strong attitude of sticking to the price and limited space for further decline. The methanol analysts of the business association predict that the methanol market may maintain narrow range finishing in the later stage.

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