News summary

Methanol prices have dropped sharply after experiencing sharp fluctuations this week, and market pessimism has warmed up. Affected by weak downstream demand, methanol inventories fell but were not effectively accumulated. Open positions have decreased, and the strategy recommends waiting and seeing.

Newsletter text

[Methanol market prices fell after experiencing a surge, and market transaction performance was weak] Recently, methanol market prices appeared after the surge.casinorocketfreespinsDue to the sharp downward adjustment, the overall market transaction atmosphere is not good, and players in the market are generally pessimistic.

Against the background of wide increases in futures and rising port spot market prices, downstream players have limited ability to accept high prices and market demand is limited. With the restart of pre-maintenance equipment, the contradiction between supply and demand in the mainland market has emerged, the price of orders transferred by traders has declined, and the methanol market has continued to be under pressure.

[The holdings of methanol varieties decreased, and the number of warehouse receipts decreased simultaneously] The total holdings of varieties were 1120804 lots, a month-on-month decreasecasinorocketfreespinsThere were 131804 hands. At the same time, the number of warehouse receipts also decreased by 9424 from the previous period to zero.

[Coal market sentiment is optimistic, and port inventories are expected to accumulate passively.] Driven by rising temperatures and peak season expectations, the coal market sentiment is generally optimistic, and low-cost supplies tend to be tight. However, the transfer of coal from origin to ports is accelerating, and port inventories are expected to continue to passively accumulate in the short term, thus limiting the room for coal prices to rise.

[The supply of methanol in the market is sufficient, and port inventories have dropped month-on-month] With the increase in domestic and overseas loads and the maintenance and restart of equipment, the overall supply in the mainland market has remained abundant. Except for ZPC parking, the Iranian methanol project is operating smoothly and shipments have increased significantly. However, some olefin units were shut down, resulting in a reduction in demand support. Methanol port stocks are 52casinorocketfreespins.520 million tons, which continued to decline month-on-month and was also at a low level year-on-year.

[Combing the logic of long and short positions in the methanol market] The bulls believe that the equipment is still being overhauled and the available supply of goods at the port is tight, while the bears believe that some olefin equipment is being overhauled as the losses intensify, and the tools opened at home and abroad have been improved.

[Strategic recommendation: The methanol market temporarily remains on the sidelines] Taking into account factors such as both maintenance and resumption of production in the methanol market, intensified losses in the downstream market, and increased arrivals to the port but not effectively accumulated port inventories, the market strategy recommends temporarily maintaining a wait-and-see attitude.