SunSirs: China Methanol Market Stops Falling and narrowly Rebounds

Methanol market in China rebounded. According to the price monitoring of SunSirs, as of June 9, the market price of methanol in China was 1,650 RMB/ ton, down 4.49% month on month and 24.45% year on year.

The main reasons for this rebound are as follows: some manufacturers in Northwest China are optimistic; freight is high, the cost of traders is increased; the center of receiving goods of downstream enterprises such as Lubei refinery is higher. The price of methanol in Northwest China rose partially, the market atmosphere was good, the main stream of Guanzhong rose to 1,390-1,500 RMB/ ton, the price of goods received in Shandong and other provinces rose with the boost of futures, the downstream and traders entered the market actively to replenish goods, the trading atmosphere was active, and the main factories in Gansu had stopped selling.

In terms of industrial chain, formaldehyde: the domestic formaldehyde market rose. Methanol in the upper reaches of Hebei and Henan is rising strongly, and local formaldehyde enterprises are passively rising. Hebei Province increased 20 RMB/ ton, to 750-770 RMB/ ton spot exchange, while Henan Province increased 10 RMB/ ton, to 840 RMB/ ton spot exchange. On site terminal demand has not improved, the factory mostly said that the delivery atmosphere is light, and the demand side support is limited.

Acetic acid: the domestic acetic acid market is active. After the shutdown of Nanjing unit, the inventory delivery contract is the main part, and the spot demand is distributed to the surrounding manufacturers to relieve the inventory pressure of the surrounding manufacturers. The market supply is gradually tight, and the low-end suppliers offer to make up for the increase, driving the market transaction price slightly higher. Downstream and traders just need to buy in the near future, overlapping market is good support, acetic acid market is optimistic at present. However, Nanjing BP, Shanghai Huayi and Shaanxi Yanchang acetic acid plant are expected to resume next week, and the overall growth of acetic acid market is expected to be limited within this week.

DME: the transaction price of domestic DME market is up and down, and the transaction atmosphere is general. The quotation of mainstream enterprises in main production areas of Henan Province refers to 2,130-2,210 RMB/ ton; of which Baoma price rises while Yongcheng price falls. Due to the relatively serious cost inversion, most enterprises would not lower their offers in the near future.

In the future, there are some differences in the market trend of methanol in various regions. According to the methanol analysts of SunSirs, the short-term domestic methanol market is mainly consolidated.

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