“Although in methanol Enterprises Limited production at the same time, also for methanol downstream enterprises synchronous limited production, but heavily dependent on external supply in Shandong area, the most seriously affected. Shanxi, Henan limited production, has a direct impact on the Shandong area outside Shandong area of methanol supply, demand, high prices.” JOYOU information analyst at Pengsen says.

High on the occasion of the majority of the market, Shandong, Jiangsu, northwest, and Zhejiang port surrounding areas cannot form the spread of goods supply to the eastern port, and not enough goods on the East China market, East China methanol stocks continued to decline, while the outer disk prices continued high, the devaluation of the RMB, the importers will is not strong, this under the background of East China, now go high synchronization also reasonable. In particular, Changzhou Fu Tak Jiangsu Shenghong two sets of test in the hope of olefin plant early next year, this is to supply goods shortage is expected to increase the market.
“Environmental protection production, this effect will continue, because the use of coal in winter season, seasonal environmental pressure, expected short-term internal pressure caused by the phenomenon of environmental protection enterprises underemployment will still continue.” Wang Pu said.

There are many factors behind the limit
It is understood that the methanol futures trading limit removed, last week, two sets of new coastal olefin plant year started again the news to stimulate the stock market, the overall demand is expected to a new level. In addition, the port inventory continued to decline last week, leading to a reduction in the flow of supply to the market, the market has been in short supply.
Data show that the recent inventory of the port area to continue to reduce, including East China stock fell to 385 thousand tons, down 8 thousand tons. At the same time, with the time to advance, the port two sets of olefin enterprises put into operation time is approaching.
In the demand for a substantial increase in expectations, with the power of futures, funds, domestic and foreign supply side is relatively limited to enlarge, so the sharp rise in methanol futures on Monday.

“From the contract point of view, the main contract since last week moved to May, access to funds of the pro lai. Masukura up yesterday.” Everbright futures analyst Zhong Meiyan believes that on the one hand, methanol is stronger fundamentals, the contradiction between supply and demand has not improved as expected stock funds, leveraging the medium-term demand is expected to sit. In addition, the overall price evaluation system restructuring, the focus of the price shift.
Specific to the supply and demand, supply abroad for various reasons recently has remained low, in December the foreign supply of only 750 thousand tons in the domestic supply by the end device; East China gas head device maintenance and parking, there has been a structural shortage of supply, demand, there exist; olefin plant (in fact is expected to drive in addition, cars have begun stocking) this year because of real estate plate start well and other factors also play a role in underpinning the macro funds face; finally, people generally optimistic about the economic situation in the first half of next year, and next year the rebound in crude oil, thisobjectively far month the first limit has created certain conditions.
In the industry view, despite the current methanol market fundamentals are strong, 2600 yuan / ton stage after a high breakthrough, methanol futures or short period of time will be in the high range of shock. But after new year’s Day approaching, the northern region of methanol downstream into the traditional off-season, the recovery will be faced with the supply of shrinking demand, when the market needs to be further discussed.