On Monday, the main methanol futures contract, MA2001, closed at 1,970 yuan per ton, up 2% from the previous trading day. There was a reduction of 260,000 contracts in open positions, with the total number of open positions remaining at...
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On Monday, the main methanol futures contract, MA2001, closed at 1,970 yuan per ton, up 2% from the previous trading day. The number of open positions decreased by 260,000 contracts, leaving 1.6 million contracts in open position. The coastal methanol market saw a slight decline; companies in the main production areas inland had decent sales performance, so there was no pressure to keep prices high. Prices in inland areas remained high throughout November, with little overall volatility in that market. The average operating capacity of methanol production facilities across China increased compared to October, and the supply pressure continued to persist and was difficult to alleviate. Currently, the overall supply and demand situation is weak, and it is unlikely to improve in the short term; the fluctuations resulting from the competition between buyers and sellers are significant. Operational advice: Approach it with a view of volatility.
Industry chain: Formaldehyde: The domestic formaldehyde market remains stable. Enterprise quotes remain stable; methanol in the upstream market is trading within a narrow range, with no impact on the formaldehyde market at present. The downstream market sees purchases driven by essential demand, resulting in generally average transaction levels. Recent environmental regulations in certain areas may lead to a slowdown in production in the formaldehyde sector and its related markets. Coupled with the lack of support from cost factors, the formaldehyde market is expected to remain weak in the short term.
Downstream products of methanol: formaldehyde, dimethyl ether, acetic acid, MTO, etc