The “capacity to” as the representative of the “supply side” reform effect is apparent, coal, iron and steel, coking coal, coke and a series of commodity prices continued to rise, forming a sufficient support for the methanol, the rising price of coal, coking coal, the higher, the by-product of coke oven gas high prices caused by the rising cost of methanol.

The supply side

November in the northwest region, Shaanxi, Yulin coal 1 million 800 thousand tons / year of methanol to olefins (MTO) methanol plant maintenance facilities, the end of the month to extend the coal 1 million 800 thousand tons / year methanol plant load matching is not high, the two sets of large MTO production to support the price of methanol in the northwest, and earlier this month, the sudden failure of Shenmu chemical 600 thousand tons / year and 600 thousand tons / year methanol plant elm days of temporary parking, further exacerbated the supply situation in Northern Shaanxi area in the northwest, prices go higher, nationwide also formed a strong linkage of methanol.

With the increasing of subsequent snow weather, will transport goods northwest and other places the cost increases further, the regional tension in the supply and demand pattern or will continue. In addition to the northwest of supply reduction, in North China, Shanxi, Hebei and other regions, there are more large-scale environmental effects of the storm. It has been reported that, at the end of November and early December nationwide haze, making a large number of Hebei, and Shandong, Henan, Shanxi coal chemical industry has also been included in the list of enterprises in production, limited production. On the methanol market, only Hebei, Shanxi and Henan provinces, involving methanol production capacity of 3 million tons / year, accounting for the total capacity of 5%. which directly shut down more than 1 million tons / year, the load is reduced to 7 following the nearly 2 million tons / year.

Demand

With OPEC output to reach an agreement by the international crude oil prices, MTO’s profitability has been significantly improved, significantly increased the overall operating level device.