Published on July 8, 2017

There is complete uncertainty prevailing for Methanol prices in China market. Sentiments were trending for hike in values. According to reports the ports are filled with inventory stocks of Methanol on other side there is sluggish demand in domestic market coupled with domestic heavy supply. Although there has been heavy consumption of chemical by MTO plants. This high demand is strong factor for rise in prices but on other side many domestic plants are likely to restart their units after brief maintenance along with rise in their existing capacities. The  Mingshui Dahua’s 600kt/yr, Xinneng Phoenix’ 200kt/yr, Hualu Hengsheng’s 1 million tons/yr, Luxi Chemical’s 800kt/yr and Sanju Jiajing’s 300kt/yr. Among them, Mingshui Dahua is going to start up its new plant as early as in mid-Jul and Hualu Shengsheng is set to put its new capacity into operation in latter half of July, however, the start of other three plants may be delayed to August. It means that a combined new capacity of 1.6 million tons is probably to be on stream in mid or late July, so supply length will not grow as much as it was expected.

This confusion has been setting Methanol values on very different note.