There has been continuous rise in coastal methanol inventory the beginning of 2020. It has reached 1.05 million tons as of the week ending May 21 (including tank inventory in both East and South China ports), compared to 0.75 million tons in the same period of last year. As a result, tank storage space is reaching the maximum capacity. It is said that vessels at East China ports now have to wait for 15-20 days to discharge cargoes. In order to enhance the circulation of goods, several tank operators have raised the storage charges for methanol. On demand side, operating rates of methanol’s downstream derivatives hover low. Profits of formaldehyde and DME are meager, while that of acetic acid maintains good. However, plant operations are affected by the measure to stem the coronavirus and requirement of environmental protection during the Two Sessions from May 21 to 28. Demand is yet to recover, and methanol piece continued correction. Crude oil price rose in May, and methanol futures were bolstered, supporting methanol spot market. However, with the delivery of May contract for methanol futures completed and crude oil pulling back, methanol futures and spot market softened.
