The current methanol market
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Currently, the domestic methanol market is weak. Due to the impact of the financial crisis, the cost of imported methanol abroad is around 1,200–1,300 yuan per ton, while the production cost of methanol in China is relatively high (the cost of producing methanol from natural gas is about 1,730 yuan； Coal-based methanol production has led to widespread shutdowns or major maintenance efforts by domestic methanol manufacturers, as cost differences arise due to variations in coal prices in different regions. Since 2006, what is the future for newly built methanol projects in China? It is worth careful consideration whether the ongoing methanol project should proceed!
Many projects under construction are set to be completed and put into operation this year, and several large-scale methanol projects have also started construction this year, indicating that the methanol market is viewed positively in the long term.
The methanol market should still have great prospects. Currently, the coal chemical industry is in a downturn, which represents an excellent opportunity to build new plants. In 2 or 3 years, the market will surely start to recover – it’s an inevitable trend
Is there a possibility of a significant rise in the methanol market?
Once the relevant standards for methanol gasoline are established, the production and sales volume of methanol in the country is likely to improve in terms of quality. After all, there will be rules governing how much methanol can be added, which will make things more rational. Additionally, survival of the fittest is a principle of market competition – only those who are better suited can survive. There will always be a way forward; one can choose to stop operating, switch to another business, or take other approaches.
The future methanol market holds potential; the key factor determining competitiveness is the process route and the energy consumption of the facilities.
At present, methanol products are mainly sold by the manufacturers themselves; there are no fixed distributors, and there is a lack of understanding of and capacity to deal with international markets. Market analysis and decision-making rely almost entirely on the domestic market. To maintain control over product sales, methanol companies need to have long-term cooperative distributors as well as a smooth and efficient global sales network, thereby gaining a certain degree of control over the methanol market. At the same time, methanol producers can form specialized storage, transportation, and sales companies to leverage their sales channel advantages in selling methanol products produced by their own shareholders as well as other companies.