Price Trend

According to the price monitoring of business associations, as of February 28, the average price of domestic methanol market was 2430 yuan/ton, and the domestic methanol market continued to oscillate upwards.

II. Market Analysis

Products: The methanol market continues to oscillate upward trend, but due to the impact of high decline in the market level, high inventory continued to suppress, the overall performance of the port continues to be weaker than the mainland, short-term trend or continuation. Driven by better shipments from the inland production areas, firms’tender/reluctant selling sentiment is obvious, and the short-term strong trend continues with the launch of spring inspection and the support of traditional downstream replenishment in the north. On the port side, groundwater cargo replenishment, olefin start-up and import arrival are still the main concerns.

Industry chain: formaldehyde: raw material methanol market continues to rise and boost, the cost of formaldehyde is better supported, Shandong formaldehyde Market narrow finishing. Linyi part is around 1200-1220 yuan/ton, Zibo and its surroundings around 1250 yuan/ton. Acetic acid: The domestic glacial acetic acid market is stable and soft. Enterprises in East China, Henan and South Shandong have higher shipping intentions, and there are more on-site supplies, which are in urgent need of digestion, so the market is on the soft side. In addition, the intention of price reduction is obvious. Downstream consumption capacity is general, some enterprises are not willing to buy, more cautious wait-and-see. Dimethyl ether: terminal inventory consumption is extremely slow, the seller bears the pressure of wide shortage, partial low-end price shipments ease slightly, but the domestic dimethyl ether Market is still not excluded from the expectation of a downward trend in the short term.

3. Future Market Forecast

Business Cooperatives’Viewpoint: On the positive side, Northwest Guiding Price: Mainland contract pre-sale smoothly, Guanzhong, Inner Mongolia and other northwest production areas are mostly closed; Domestic installations: Mainland based on spring inspection and other factors, and under the influence of environmental protection policies, maintenance enterprises are increasing, local supply or contraction in the later period; Olefins: olefins procurement, pre-sale is good, supporting raw material methanol prices. On the negative side, inventory: high inventory in the port area is difficult to digest in the short term, and the inventory pressure is high; freight: local freight of methanol has fallen significantly in the near future, which makes the cost of arrival slightly loose. Methanol analysts at business associations predict that the short-term domestic methanol market will rise slightly.