Summary Post on the Methanol Market Conditions and Prices in December 2016

Methanol prices as of December 1, 2016: http://www.chemcp.com. According to China Chemical Products Network, the details are as follows: Shandong Linyi Hengchang – industrial-grade methanol at 2540; shipments are normal. Hubei Sanning – industrial-grade methanol at 2480; some products are used internally. Jiangsu Hengsheng – industrial-grade methanol at 2540. Chongqing Wansheng – methanol at -0; not available for export. Guizhou Jinchai Chemical – industrial-grade methanol at 2600. Jiangsu Yizhou Coal Coking – industrial-grade methanol at 2520. Shanxi Jiantao Wanxinda – industrial-grade methanol at 2300. Shanxi Jiantao Lubao – industrial-grade methanol at 2400. Shandong Binzhou Xintianyang – methanol at 2400. Shandong Lianmeng – industrial-grade methanol at 2440, priced in cash. Shanxi Datuhe Coking – industrial-grade methanol at 2220. Shandong Tengzhou Shenglong – industrial-grade methanol at 2450, factory price. Hunan Yihua – industrial-grade methanol at 0, price stable. Henan Hebi Coal and Electricity – industrial-grade methanol at 2300. Shaanxi Heimaohao Coking – industrial-grade methanol at 2250. Shaanxi Xianyang Chemical – methanol at -2230, factory price. Shandong Xinneng Phoenix – industrial-grade methanol at 2490, shipments stable. Shanxi Anze Yongxin – industrial-grade methanol at 2250. Anhui Haoyuan – industrial-grade methanol at 2450, priced on credit. Sichuan Dazhou Iron and Steel – industrial-grade methanol at 0. Sichuan Chuanwei – industrial-grade methanol at 2350. Shandong Yankuang Group – industrial-grade methanol at 2430, shipments normal. Shanxi Coking – industrial-grade methanol at 2220. Dalian Dahuahua – methanol at -2380, available only for local sales. Inner Mongolia Rongxin Chemical – industrial-grade methanol at 2050. Shandong Mingshui Dahuahua – industrial-grade methanol at 2480, priced in cash. Shaanxi Shenmu Chemical – industrial-grade methanol at 2050. Daqing Oilfield – industrial-grade methanol at 2500. Heilongjiang Zhongmei Longhua – industrial-grade methanol at 2600. Hebei Shijiazhuang Jinshi – industrial-grade methanol at 2340. Hebei Dingzhou Tianlu New Energy – industrial-grade methanol at 2350. Shaanxi Changqing Energy – industrial-grade methanol at 2140, factory price. Hebei Zhengyuan Chemical – industrial-grade methanol at 2380, priced on credit. Henan Xinlianxin – industrial-grade methanol at 2400. Hebei Tangshan Zhongrun – industrial-grade methanol at 2400, widely accepted in the surrounding area. Tangshan Guyu Coal Coking – industrial-grade methanol at 2400, priced in cash. Heilongjiang Qitaihe Jiwei – industrial-grade methanol at 2300. Heilongjiang Yidaxin – industrial-grade methanol at 2400. Heilongjiang Jianlong Iron and Steel – industrial-grade methanol at 2400, factory price. Heilongjiang Baotailong Coal Methanol – industrial-grade methanol at 2700

Analysis of methanol price trends as of December 1, 2016: http://www.chemcp.com. As of December 1, 2016, according to China Chemical Products Network, the retail prices for enterprises in southern Shandong have increased by 50–60 yuan per ton, reaching 2470–2490 yuan per ton. Traders offer a price of around 2490 yuan per ton for deliveries to Linyi without invoices. Dynamic downstream olefins are purchased as needed; manufacturers can still supply goods. However, some plants have been shut down, leading to low inventory levels and rising prices. Prices in the areas surrounding Xianyang, Shaanxi have risen; major manufacturers have increased the export price by 30 yuan per ton, to 2250–2280 yuan per ton. High-end products are available through acceptance arrangements, while manufacturers have moderate inventory levels, and contracts remain the primary basis for transactions. The price of methanol at Taicang port in Jiangsu is 2530–2540 yuan per ton, subject to negotiation. The prevailing transaction/offer prices in Nantong are around 2,560–2,570 yuan per ton, while in Jiangyin and Changzhou they are between 2,560–2,580 yuan per ton. The quotes from major suppliers of methanol at Ningbo Port range from 2,610 to 2,630 yuan per ton, with moderate trading activity. Dynamic futures prices are rising, and ports in East China are seeing higher prices; in Taicang, there were occasional transactions this morning at around 2520–2530 yuan per ton. The prevailing price of methanol at ports in Guangdong, South China, is between 2,500 and 2,520 yuan per ton. The methanol market is on the rise; some transactions this morning took place at around 2,500–2,510 yuan per ton, with moderate trading activity in the market. The ex-factory prices of major companies in Fujian region range from 2,700 to 2,750 yuan per ton. The dynamic methanol market remains stable, and the actual transaction prices can be negotiated; merchants at Quangang and Xiamen ports offer prices of 2,630 to 2,650 yuan per ton, with limited actual trading activity. In the southern and southeastern parts of Shanxi province, the ex-plant prices of major methanol producers have increased by 20 yuan per ton, reaching 2200–2320 yuan per ton. The plants in Jincheng are operating steadily, with quoted prices at 2300 yuan per ton. The current spot price for shipments from Linfen is around 2,250–2,280 yuan per ton, while the standard price for shipments from Changzhi is around 2,320 yuan per ton. Market activity remains satisfactory at present. The prevailing acceptance prices for shipments by manufacturers in Anhui region are around 2,420–2,450 yuan per ton. The dynamic methanol market remains stable; major companies are operating normally, adhering to their contracts, and shipments are proceeding satisfactorily. In Hubei region, the prevailing negotiation price ranges from 2,480 to 2,550 yuan per ton; the factory prices apply to major manufacturers in the lower-end segment, while prices offered by traders in Wuhan apply to the higher-end products. The prevailing negotiation price in Hunan is between 2,600 and 2,650 yuan per ton; manufacturers have suspended providing quotes, with most prices coming from traders in Changsha. The methanol market in the dynamic Two Lakes region is consolidating. Local methanol manufacturers in Xinjiang region quote prices of 1,500–1,550 yuan per ton; the actual prices are slightly lower. Contracts are the basis for transactions, and the equipment of the major manufacturers is operating normally. The dynamic prices within the region are relatively low; the manufacturer’s ex-factory price is 1250–1300 yuan per ton, while the price for delivery in the area around Urumqi is around 1300–1400 yuan per ton. The actual transaction price can be negotiated. The export price for enterprises in Shijiazhuang and its surrounding areas in Hebei is around 2,270–2,320 yuan per ton, while the price for transactions through traders is 2,300–2,320 yuan per ton. In Wen’an, the price without invoices is 2,280–2,300 yuan per ton. The standard export price in Tangshan is around 2,380–2,400 yuan per ton. Dynamic production restrictions by manufacturers have led to a reduced overall supply of goods; coupled with rising shipping costs, market activity remains moderate. Downstream buyers purchase goods based on their needs, which helps to keep prices stable. In the northern Jiangsu region, the mainstream ex-factory price has risen by 40 yuan per ton, ranging between 2500 and 2580 yuan per ton. The overall methanol market is on an upward trend; major manufacturers are operating steadily, with sales primarily directed at contract clients. Demand from downstream sectors is satisfactory, and overall market inventory levels are low. The methanol market in Guangxi is performing fairly well, with port delivery prices around 2,550 yuan per ton. The prevailing delivery price of methanol by traders in different regions is around 2,620 yuan per ton. Due to maintenance work on facilities by manufacturers in the Henan region, the overall supply of methanol is limited; the main selling price for methanol among local companies is around 2400 yuan per ton. Supply is tight in the Luoyang area, and with rising prices of goods from the northwest as well as increased shipping costs, traders are offering prices in the range of 2400–2410 yuan per ton.

Analysis and forecast of domestic methanol price trends on December 2: http://www.chemcp.com, December 2, 2016. China Chemical Products Network. Domestically, purchases of olefins in the northwest region have kept prices stable; rising freight costs have led to a decrease in the supply of goods available for sale, thereby increasing costs. The downstream market is gradually entering its off-season, with purchases being made based on actual demand. Overall market activity is moderate. Prices are expected to remain stable as the weekend approaches, with some adjustments made locally depending on specific circumstances. Northwest region: As the weekend approached, there were no significant changes in the market as a whole. The demand for olefins from outside the region provided support, leading to slight price increases in some areas; overall, inventory turnover remained average. Bohai Rim region: Due to the impact of environmental protection laws, manufacturers upstream have reduced production, resulting in low inventory levels. Additionally, rising freight costs have led to a shortage of supply, while demand from downstream users is moderate; purchases are made based on actual needs. Port area: Affected by external market trends, futures prices rose fluctuatively, leading to price increases in the port area. Forecast: The methanol market is expected to remain largely stable with slight upward movements in some areas.

Analysis of methanol price trends on December 2, 2016: http://www.chemcp.com. As of December 2, 2016, according to China Chemical Products Network, the mainstream retail prices for enterprises in southern Shandong have increased by 30 yuan per ton, reaching 2500–2520 yuan per ton. Traders offer a price of around 2500 yuan per ton for deliveries to Linyi area without invoices. Supported by dynamic purchases of downstream olefins, manufacturers have an adequate supply of goods available for sale. Additionally, due to the significant increase in shipping costs for goods coming from the northwest, manufacturers have low inventory levels, which contributes to an overall rise in market prices. In the Hebei region, enterprises in Shijiazhuang and its surrounding areas are selling at around 2290–2340 yuan per ton, with a price increase of 20 yuan per ton for shipments via trade; in the Wen’an area, informal quotes without official invoices are at 2400 yuan per ton. In Tangshan, the standard selling price has increased by 50 yuan per ton, reaching around 2430–2450 yuan per ton. Driven by rising prices in surrounding areas, inventory levels among manufacturers in this region are low; downstream buyers purchase as needed, and traders hold a bullish attitude, resulting in moderate market activity overall. The overall methanol market in the southwest region is showing an upward trend; the main selling price for manufacturers in Sichuan and Chongqing is around 2,380–2,420 yuan per ton, with most manufacturers adhering to their contract terms. In the Sichuan-Chongqing region, current inventory levels are low; downstream purchases are satisfactory, and traders are optimistic. Major suppliers are accepting orders at around 2470–2500 yuan per ton, including taxes. The price of methanol at Taicang port in Jiangsu is 2540–2550 yuan per ton, subject to negotiation. The prevailing transaction/offer prices in Nantong are around 2,570–2,580 yuan per ton, while in Jiangyin and Changzhou they are between 2,570–2,590 yuan per ton. The quotes from major suppliers of methanol at Ningbo Port range from 2,610 to 2,630 yuan per ton, with moderate trading activity. Dynamic futures show volatility, while ports in East China see price increases; in the morning, there were sporadic transactions in Taicang at around 2530–2540 yuan per ton. The prevailing price of methanol at ports in Guangdong, South China, is between 2,520 and 2,540 yuan per ton. The methanol market is on the rise; some transactions this morning took place at around 2,510–2,530 yuan per ton, with moderate trading activity in the market. The mainstream ex-factory prices in central and eastern Shandong have risen by 40 yuan per ton, reaching 2470–2480 yuan per ton; in some cases the prices are slightly higher. Traders in Zibo and its surrounding areas are trading at around 2450 yuan per ton, with some prices being slightly higher, at 2480–2500 yuan per ton. Manufacturers in the dynamic region are able to meet their shipment demands; inventory levels are low. Coupled with rising freight costs and difficulties in finding vehicles, downstream buyers purchase only as needed. Traders are optimistic, driving an overall rise in market prices. The prevailing acceptance prices for shipments by manufacturers in Anhui region are around 2,450–2,500 yuan per ton. The dynamic methanol market remains stable; major companies are operating normally and adhering to their contracts, with most players adopting a wait-and-see attitude toward the market. Shipments have been satisfactory recently. The ex-plant prices of major companies in Fujian region range from 2,700 to 2,750 yuan per ton. The dynamic methanol market remains stable, with actual transaction prices subject to negotiation; some suppliers at Quangang and Xiamen ports offer prices of 2,650 yuan per ton, though trading volume is low. In Hubei region, the prevailing negotiation price is between 2,530 and 2,570 yuan per ton; the factory prices come from major manufacturers in the lower-end segment, while those from Wuhan-based traders apply to the higher-end segment. The prevailing negotiation price in Hunan is between 2,600 and 2,650 yuan per ton; manufacturers have suspended providing quotes, with most prices coming from traders in Changsha. The methanol market in the dynamic Two Lakes region is rising. The overall methanol market in Henan region has seen an increase, with local methanol producers selling their product at around 2400–2450 yuan per ton. Traders in the Luoyang area are offering prices around 2,450–2,500 yuan per ton; due to a tight supply locally, traders are optimistic and have decided not to sell for now. In the southern and southeastern parts of Shanxi province, the selling prices of methanol from major manufacturers have increased by 50 yuan per ton, reaching 2250–2370 yuan per ton. The production facilities in Jincheng are operating steadily, with quoted prices at 2320 yuan per ton. The current spot price for shipments from Linfen is around 2,260–2,320 yuan per ton, while the standard price for shipments from Changzhi is around 2,370 yuan per ton. Market activity remains satisfactory at present. Keywords: Methanol price database

Methanol prices as of December 2, 2016: http://www.chemcp.com. China Chemical Products Network – Company/Region Name, Type, Price, Notes: Shandong Yankuang Group, Methanol, Industrial grade, 2470, Normal shipments; Shandong Lianmeng, Methanol, Industrial grade, 2460, Spot price; Shanxi Datuhe Coking, Methanol, Industrial grade, 2220, Quoted price; Shandong Mingshui Dahuahua, Methanol, Industrial grade, 2480, Spot price; Daqing Oilfield, Methanol, Industrial grade, 2500, Ex-factory price; Heilongjiang Zhongmei Longhua, Methanol, Industrial grade, 2600, Quoted price; Heilongjiang Baotailong Coal, Methanol, Industrial grade, 2700, Quoted price; Hebei Zhengyuan Chemical, Methanol, Industrial grade, 2380, Acceptance-based price; Hebei Dingzhou Tianlu New Energy, Methanol, Industrial grade, 2450, Quoted price; Inner Mongolia Shenhua Mengxi, Methanol, Industrial grade, 2000, External quotation price; Henan Xinlianxin, Methanol, Industrial grade, 2450, Quoted price; Heilongjiang Qitaihe Jiwei, Methanol, Industrial grade, 2300, Quoted price; Heilongjiang Yidaxin, Methanol, Industrial grade, 2400, Quoted price; Heilongjiang Jianlong Steel, Methanol, Industrial grade, 2400, Ex-factory price; Chongqing Wansheng, Methanol, –, 0, Not for export yet; Shanxi Coking, Methanol, Industrial grade, 2270, Quoted price; Shandong Linyi Hengchang, Methanol, Industrial grade, 2540, Normal shipments; Hubei Sanning, Methanol, Industrial grade, 2480, Some products for internal use; Jiangsu Hengsheng, Methanol, Industrial grade, 2540, Quoted price; Guizhou Jinchili Chemical, Methanol, Industrial grade, 2600, Quoted price; Jiangsu Yizhou Coal Coking, Methanol, Industrial grade, 2520, Quoted price; Shanxi Jiantao Wanxinda, Methanol, Industrial grade, 2300, Quoted price; Shanxi Jiantao Lubao, Methanol, Industrial grade, 2400, Quoted price; Shandong Binzhou Xintianyang, Methanol, –, 2400, Quoted price; Shandong Tengzhou Shenglong, Methanol, Industrial grade, 2450, Ex-factory price; Hunan Yihua, Methanol, Industrial grade, 0, Stable price; Henan Hebi Coal and Electricity, Methanol, Industrial grade, 2300, Quoted price; Shaanxi Heimaocat Coking, Methanol, Industrial grade, 2250, Quoted price; Shaanxi Xianyang Chemistry, Methanol, –, 2230, Ex-factory price; Shandong Xinneng Phoenix, Methanol, Industrial grade, 2490, Stable shipments; Shanxi Anze Yongxin, Methanol, Industrial grade, 2250, Quoted price; Anhui Haoyuan, Methanol, Industrial grade, 2450, Ex-factory under acceptance terms