2017 Annual Digital Review of the Methanol Industry

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2017 Annual Digital Review of the Methanol Industry Author/Source: Date: 2017-12-26 Clicks: 17 59.88% According to data from Business Society, as of December 25, domestic methanol prices reached new highs, with an average price of 3,511 yuan per ton. The price increase for the year was 21.99%, while the maximum fluctuation during the year was 59.88%. This upward trend began in early Q3 and continued throughout the second half of the year, with prices reaching near four-year highs by the end of the year. 　　66.03% The average operating rate of methanol plants increased significantly in 2017; the average operating rate in 2015 was 56.08%, while it was 61.65% in 2016, representing a year-on-year increase of 5.57%. According to statistics, as of mid-December 2017, the average operating rate of methanol plants was 66.03%, an increase of 4.38% on a year-on-year basis. The main reasons for the significant upward shift in the operating rate of methanol plants in 2017 were as follows: First, profits in the methanol industry increased, and the industry’s profit margin remained at a high level; driven by these profits, the operating rate of methanol plants saw a noticeable rise. Secondly, import volumes fell short of market expectations; to meet domestic downstream demand, the operating rates of methanol plants increased significantly. 　　48.95% 　 According to monitoring, in 2017 the profits of the methanol industry increased, with industry profit margins remaining at a high level. To date, the profit margin of the methanol industry in 2017 reached over 50%, marking the highest level in nearly three years. On December 19, the profit margin in the methanol industry was 48.95%. 　　4.2 million tons. In 2017, methanol production capacity continued to increase, but the growth rate slowed down significantly. Abroad, only two small units with a total capacity of 230,000 tons have been put into operation ； Domestically, the total production capacity amounts to 85.2 million tons, with an additional 4.2 million tons of capacity added during the year, resulting in a growth rate of less than 5%. 　　7.755 million tons. According to monitoring, in 2017 only 2 small methanol production facilities were put into operation abroad, with a total capacity of around 233,000 tons ； And they all have corresponding downstream industries; they do not supply methanol to the outside market. The commissioning dates of the vast majority of large-scale foreign methanol plants that were originally scheduled to begin operation in 2017 have been postponed one after another; they will either start operating in 2018 or later, with a total production capacity of around 7.755 million tons. The commissioning dates of new methanol plants abroad are being postponed one after another, which may result in methanol imports falling below market expectations. 　　12.72 million tons. In 2017, Trine’s olefin production facility with an annual capacity of 720,000 tons came online in August, which further increased the domestic capacity for producing olefins from methanol. By the end of 2017, China’s capacity for producing olefins from methanol had reached 12.72 million tons. 　　15% To improve air quality, measures such as switching from coal to gas or electricity have been further intensified throughout the year. With the arrival of the heating season in autumn and winter, there has been a shortage of gas in various regions, and natural gas prices have risen sharply, increasing the cost of using gas as a fuel. Methanol, being a clean energy source with relatively low prices, has seen a significant increase in demand; it is widely used in industries such as catering and heating. This year, methanol accounted for around 15% of total fuel demand, and its use is expected to continue to grow. 　　37.93 million tons 　In the first 10 months of 2017, China’s methanol production amounted to 37.93 million tons, representing a year-on-year increase of 9.1% ； Import volume was 6.802 million tons, down 7.6% on a year-on-year basis; export volume was 120,000 tons, while the apparent consumption volume was 44.612 million tons, up 4.9% year-on-year. The self-sufficiency rate is 85%, while the dependence on imports is 15.3%.