China’s Inland Methanol Prices to be Mixed under Snowy Weather

Last week, influenced by the active destocking in the major producing areas and the high freight, the methanol prices in the inland areas dropped sharply. The weekly average price was RMB 3,102/mt in Shandong and RMB 2,659/mt in Inner Mongolia last week.

In order to promote the sales, some methanol producers adopted the “Baojia” policy (The buyers take away the goods first and make settlement later). Thus, the sales were relatively smooth at some producers. However, the traders were still puzzled by the rising freight and the delay in the arrival of goods.

The intensive delivery led to the overall increase in the freight. Up to January 19, the freight from northern Inner Mongolia to northern Shandong was RMB 330-360/mt, and that from southern Inner Mongolia to northern Shandong was RMB 330-430/mt.

According to National Meteorological Center of CMA, the snowy weather is predicted to last from January 23 to January 28, which will continue to curb the transportation in some areas. The inventory at the producers will keep rising, and some producers may continue to cut prices to destock. In the downstream areas, as the goods are delayed to arrive, the methanol prices may show a periodical uptrend in some areas.