China's methanol market prices will remain weak in August

Since August, although some companies in the main producing areas of China's methanol market can complete their sales tasks within the week, they still have certain resistance to large-volume shipments. Due to the factors of early orders, the progress of signing orders is not nearly satisfactory for some companies. However, there are also local orders due to maintenance of major factories, leading to acceptable progress.

On the macro level, the impact of international public health events on the United States is still ongoing, leading to a weaker decline in the US dollar index, which in turn drove the continued strength of the RMB exchange rate. The offshore renminbi exchange rate went from a high of 7.1964 on May 27 to a recent low of 6.9272. The strengthening of the RMB exchange rate is conducive to the increase of methanol imports in China's methanol market. China's methanol market imports in June were 1,274,200 tons, an increase of more than 210,000 tons from May.

On the supply side, with the gradual end of the centralized maintenance of domestic methanol plants, the increase in supply has increased the sales pressure of the company. Coupled with the recent high transportation costs, some companies have maintained their fixed sales tasks during the week and have to be forced to lower prices for shipments. . Under the influence of low-price supply in the market, some methanol producers near the consumer market are in a relatively passive state. Passively building price barriers is also inevitable.