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On May 10, the China Nitrogen Fertilizer Industry Association held the 2018 China Methanol Industry Conference in Hangzhou, where it summarized the work carried out in the methanol industry in 2017 and analyzed and discussed the trends in the methanol market for 2018. On that day, the China Nitrogen Fertilizer Industry Association honored the top 20 producers of methanol in the country for 2017, as well as the advanced enterprises in the methanol industry in terms of energy conservation. Gu Zongqin, president of the China Nitrogen Fertilizer Industry Association, said at the meeting that the development of methanol is currently favored by positive factors such as the recovery of the world economy, a steady rise in international oil prices, continuous increase in demand for downstream products, and a reduction in overcapacity. However, it is also necessary to consider the negative factors, as many challenges still remain. Gu Zongqin believes that as economies in various countries recover, it will inevitably lead to an increase in demand for chemical products, which in turn will drive up methanol prices further. At the same time, the recovery in international oil prices will drive up the prices of methanol abroad, which will help enhance the competitiveness of domestic methanol production that relies on coal as a raw material, and it will also provide strong support for domestic prices. Consumption data from the past decade or so show that China’s methanol consumption has been growing at a rate of over 10% per year. Gu Zongqin predicts that methanol consumption will continue to grow along its previous trend in the coming years, for three reasons: first, the pilot programs for methanol-powered vehicles will continue to advance ； Next are alcohol-based fuels for boilers and stoves, which serve as clean alternatives to coal and can **improve air quality** ； Third, demand for downstream products of methanol will continue to grow, and coal-based olefins remain the main direction for the development of this industry. In addition, new downstream products are still being continuously researched and developed, such as the production of p-xylene via toluene methanol methylation. However, China’s methanol industry still faces a series of challenges. Gu Zongqin said that this year there are still significant challenges, including the arduous task of reducing overcapacity, an uneven development pattern between upstream and downstream sectors, increasing pressure in terms of safety and environmental protection, and rising pressures on raw material prices. Although the methanol plants that have been shut down for two consecutive years have a production capacity of over 9 million tons per year, there are more than 120 such manufacturing enterprises. However, Gu Zongqin pointed out that as the market improves, some old production facilities with high energy consumption, high emissions, and outdated equipment might be brought back into operation. Furthermore, a large number of new plants come online each year, along with upgrades and expansions, which results in a continued rapid increase in methanol production capacity; thus, it is very challenging to phase out outdated production capacities. The pressure regarding safety and environmental protection in the methanol industry will continue to increase. Gu Zongqin said that methanol manufacturers, as chemical enterprises with high energy consumption and high emissions, face significant pressures from various aspects, including rising costs related to environmental protection measures and operational costs, as well as the need to suspend or limit production in accordance with emission reduction requirements during emergency situations. To achieve high-quality development in the methanol industry, Gu Zongqin proposed that five key areas of work should be addressed this year: continuing to work on reducing overcapacity ； Accelerate the adjustment of the product structure, expand the industrial chain, and increase the added value of products as well as their competitiveness in the market ； Accelerate the adoption and dissemination of advanced technologies to drive technological progress in the industry ； Further improve the industry’s energy conservation and emission reduction levels ； Actively carry out international exchanges and cooperation. **Companies such as Energy Investment Group Co., Ltd., Shanxi Jincheng Smokeless Coal Mining Group Co., Ltd., Yankuang Group Co., Ltd., and Shaanxi Coal and Chemical Industry Group Co., Ltd. were among the top 20 producers of methanol in 2017. Six companies, including Shandong Hualu Hengsheng Group Co., Ltd., Anhui Haoyuan Chemical Group Co., Ltd., Anhui Jinmei Zhongneng Chemical Co., Ltd., Weinan High-Tech Zone Weihe Clean Energy Co., Ltd., CNOOC Jiantao Chemical Co., Ltd., and Chongqing Kabelue Chemical Co., Ltd., were awarded the title of “Advanced Enterprises in Energy Conservation in the Methanol Industry for 2017” for their outstanding achievements in tapping into energy-saving potential, advancing energy conservation and emission reduction efforts, and improving energy utilization efficiency.