The trends of the domestic methanol market at the first half and second half of 2010 were greatly different. During the first half of the year, the market price of domestic methanol remained at a low level. While during the second half of the year, the price began to rise gradually, and the market price in some regions even rebounded to the level before the financial crisis. Soon afterwards, the market price straightly turned down, and dropped to the level at the beginning of the year. During the period of Spring Festival, a lot of buyers stocked up the goods positively, this resulted in the shortage of market supply of methanol and lead to the rise in price. A large number of the supply of methanol are controlled by the hands of middlemens and did not come into the market circulation. After the Spring Festival, there was a large-scale labor shortage in the Yangtze River Delta and Pearl River Delta region in southern China. This situation also spread to the formaldehyde industry and its downstream plank industry in Shandong, North China and other regions. In particular, the problem of labor shortage in the plank industry is very serious currently, so the operating rate for most enterprises is relatively low. The underproduction in plank industry had a direct impact on the demand for formaldehyde, and reduced the market demand for formaldehyde. This had lead to the downturn in the domestic formaldehyde industry, which further affected the market demand for methanol. The market price of domestic methanol has fallen since the second half of 2008. From then on, it has been in a more difficult situation. The whole operating rate of domestic methanol industry has been hovering between 40 to 50%. The domestic methanol industry would like to make use of the anti-dumping policy and take a change of the market downturn condition, but this wish will be difficult to achieve. Without the support of anti-dumping policy, the domestic methanol market condition is much more unpromising. 2010 was the last year of the “Eleventh Five-Year” plan. So since October, 2010, all the regions began to take measures to achieve the targets for saving energy and reducing emissions. As a result, many domestic methanol production enterprises had been severely affected, which made the market supply of methanol greatly reduced, and the market price began to rise rapidly. Some market analysts believe that, as Saudi Arabia is China’s largest importer of crude oil at present, so the relationship between China and Saudi Arabia greatly affects the security of China’s energy. In the face of this issue, the interest of the domestic methanol industry becomes less critical.

Source by Green Alice