SunSirs: China Methanol Market Rises slowly

Futures rose sharply at the beginning of the week. After raising the quotation in the main production area of Northwest China, shipments were good, the demand for trade replenishment increased, and many factories stopped selling. According to the monitoring of SunSirs, from August 20 to 27, the average price of domestic methanol production enterprises in Shandong increased from 2,577 RMB/ ton to 2,615 RMB/ ton, with a price increase of 1.45% in the cycle, a price increase of 1.16% month on month and a year-on-year increase of 62.17%.

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 this week, which plays a positive guiding role in the whole domestic methanol market. The crude oil market rebounded, the coal price may be high, and the methanol cost is supported.

In terms of downstream products, most of the formaldehyde markets run higher, and some decline in a narrow range; The market price of dimethyl ether fluctuated. Each region adjusted the price according to its own situation, and the market transaction atmosphere was mild; The domestic acetic acid market is stable. In the past month, the domestic acetic acid market has been in a wait-and-see state. Although the rise and fall in different regions fluctuated slightly, the overall fluctuation was narrow and even stable last week.

In terms of external market, as of the closing on August 26, the closing price of CFR Southeast Asia methanol market was $389.00-390.00/ ton. The closing price of US Gulf methanol market was 130.00-131.00 cents/ gallon; The closing price of FOB Rotterdam methanol market was 401.00-402.00 euros/ ton, down 5 euros/ ton.

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

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