SunSirs: China Domestic Methanol Market Fluctuated and Rose in July

According to the Commodity Market Analysis System of SunSirs, the domestic methanol market has been fluctuating and rising. From July 1st to 28th (as of 15:00 in the afternoon), the average price of the East China port in the domestic methanol market increased from 2,180 RMB/ton to 2,281 RMB/ton, with a price increase of 4.66% during the cycle, the maximum amplitude of 8.27%, and a year-on-year decrease of 11.18%.

Towards the end of the month, the domestic methanol market continued to rise and the atmosphere continued to warm up.

As of the closing on July 28, methanol futures in Zhengzhou Commodity Exchange fell. The main methanol futures contract 2309 opened at 2,260 RMB/ton, with a maximum price of 2,307 RMB/ton and a minimum price of 2,255 RMB/ton. It closed at 2,298 RMB/ton in the late trading session, an increase of 36 RMB/ton or 1.59% compared to the settlement on the previous trading day. The trading volume was 2,191,959 lots, the position was 1,128,875 lots, and the daily increase was -9,794 lots.

On the cost side, coal prices are stable and relatively strong, and downstream chemical enterprises generally maintain a focus on just in demand procurement, but the sentiment of price increases is spreading. The cost of methanol is relatively favorable.

On the demand side, downstream formaldehyde: Shandong Lianyi device is increasing its load, and formaldehyde demand may increase; The demand for acetic acid may not change significantly; Downstream chloride: Jiujiang Jiuhong plans to restart, and chloride demand may increase. Downstream MTBE: Haite Weiye plans to resume, and MTBE demand may increase; Downstream dimethyl ether: Henan Xinlianxin is expected to recover, and demand for dimethyl ether may increase. The demand side for methanol is favorable and has a positive impact.

On the supply side, Shandong Alliance, Xiaoyi Xindongheng, Shanxi Guangda, Shandong Mingshui, and Sinopec SVW units have reduced production; Wangcang Hezhong, Henan Xinlianxin, Shaanxi Jingyi Chemical, Gansu Huating, and Yankuang Guohong units have been restored. The overall recovery is greater than the loss, resulting in an increase in capacity utilization. The supply side of methanol is negatively affected.

In terms of external trading, as of the close on July 27th, the CFR Southeast Asian methanol market closed at $289.00- $291.00 per ton. The closing price of the US Gulf methanol market is 65.00-67.00 cents per gallon; The FOB Rotterdam methanol market closed at 210.75-212.75 euros/ton, up 8 euros/ton.

In the future, there is sufficient short-term supply, stable cost support, and gradually increasing downstream demand. Methanol analysts from SunSirs predict that the domestic methanol market may rise again.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.