Methanol is a crucial raw material for the production of paraformaldehyde. Let's discover the latest methanol market trends shared by Huafu Factory.
From September 6 to 13 (by 15:00), the average price of methanol in East China ports dropped from 2540 RMB/ton to 2491 RMB/ton (approximately 342 USD/ton). During this period, the price witnessed a decline of 1.93%, a month-on-month increase of 4.66%, and a year-on-year decrease of 8.60%.
As methanol futures retreated from their highs, the sentiment in the spot market weakened. Traders became cautious, leading to a slowdown in methanol offloading. Simultaneously, inventory levels at production facilities increased, prompting manufacturers to hold their prices and resulting in a stalemate in the market. The methanol market in China is currently experiencing a phase of consolidation with volatility.
From a cost perspective, the demand for agricultural and industrial uses is relatively weak during the off-season. In the short term, it is anticipated that coal prices in the chemical industry will continue to fluctuate within a narrow range. This, in turn, will have an impact on the downward pressure on methanol costs.
Considering the future outlook, with weaker cost factors and pre-holiday stockpiling breaking through as mentioned by industry insiders, Huafu Chemicals predicts that the methanol market in China will continue to experience high-level volatility in the coming period.
