With the downstream end stage replenishment and pre orders is executed, the end of the domestic methanol bullish factors, spot began to step down since last week. From the industry supply and demand side, in the short-term market is still not optimistic about the methanol.
Supply side continued to improve
Methanol enterprises operating rate increased gradually. With the end of the Spring Festival holiday, the weather improved, the domestic methanol production is gradually restored, enterprises operating rate steadily. Survey data show, as of last weekend methanol market overall operating rate close to 64%, the North China, East China and other places more than 70%, the Southern China market has reached more than 90%. In addition, the new device will be put into operation, adequate supply of methanol.
Imported methanol is expected to increase. With the weather warming, Iran and other places device is expected to be resumed, supply to the China is bound to increase. Malaysia's national oil company (Petronas) small unit 660000 tons / year has been restored, and in January Indonesia, Brunei to supply device, the overall increase in asia. Foreign device is expected to resume, China methanol imports are expected to increase.
In the import prices background, northwest and other sources will be a large number of foreign, may impact on other areas of domestic prices of methanol. At present, the sales department Inner Mongolia methanol enterprises generally have established for the Southern China market sales plans, through the development of highway transport scheme perfect, integration of the motor, the warehousing resources completed, preliminary implementation of cross regional sales breakthrough. With the arrival of the "south" the domestic methanol, the overall level of prices in the market by a certain impact, in the face of methanol market trend change, end users have had a wait-and-see mood, the business because of slow sales only lowered the price.
The main products of poor supporting demand
Formaldehyde poor demand, take the goods is weak. Formaldehyde some manufacturers are still in production market, short-term to consumption based inventory, but due to the daily goods less, inventory pressure still exists. Competing price of methanol and formaldehyde, is particularly detrimental to the industry chain to stabilize prices. Less than two ether operating capacity, directly led to the reduction of demand for methanol. Snowfall of formaldehyde starts continue to push back, there are still some device not restart. Olefin market is not optimistic, prices continued to decline, and aromatic hydrocarbons, faced with the introduction of the new policy, the new main consumer olefin has faced parking, Nanjing Huisheng, Ningxia Ning coal has temporary parking, Zhejiang major downstream in March also has maintenance plan. Affected by the upstream raw material prices, the market reaction of acetic acid may be lagging behind, later period prices may continue to fall. Acetic acid manufacturers in the low inventory and the market supply is tight support downstream push the intention, the market has some weakness in the situation, temporarily to a smooth, local slightly callback. Hence, from the demand side, methanol downstream the plate prices are weakening, the methanol supporting role to continue weakening trend.
