Secondly, due to rising crude oil prices and the devaluation of the renminbi, which imported methanol prices upside down domestic spot, imports of goods into decline, and some shipping extension is exacerbated this phenomenon, and the east part of coal to olefins plant near the production led to East supply shortages, port stocks continued to decline.

As of December 2nd, the two domestic methanol port inventory 506 thousand and 500 tons, compared with September 18th year highs fell 374 thousand and 500 tons, down 42.51%. the eastern port inventory 385 thousand tons, compared to September 18th fell 322 thousand tons, down 45.54%; Southern China port inventory 121 thousand and 500 tons, compared to September 18th decreased by 52 thousand and 500 tons, down 30.17%.

The origin of domestic methanol mainly concentrated in the northwest region, so when the supply of methanol in the East China and North China appeared in short supply, mainly through the northwest region to fill the supply gap of methanol.

However, at the end of the northwest high operating rate of methanol to olefins, a number of coal to olefins plant as supporting device production, started production of methanol. This makes the northwest supply basically reach the balance of supply and demand, the supply quantity is less able to flow east.

In addition, the northwest winter haze and snow weather, make the logistics unchanged, rising freight costs increase the cost of transportation, the enthusiasm of northwest North China sources into further reduced, led to inadequate methanol structural supply pushed up the price of methanol.

The demand side, at the beginning of next year will be a lot of olefin plant production, and a large part of these devices is coal olefins, which means that these devices once put into operation, will purchase a large number of methanol production potential, a sharp rise in demand is also an important factor to promote the rise of methanol.

Rising risks