12 October 2010 07:47 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Sichuan Jiangyou will prolong the shutdown at its 100,000 tonne/year methanol unit in southwest China until margins improve or demand picks up, a source close to the company source said on Tuesday.
The unit was shut on 16 July as a result of weak demand, the source added.
Domestic Chinese prices had decreased from around yuan (CNY) 2,800/tonne ($420/tonne) ex-tank in the beginning of the year to around CNY2,100/tonne ex-tank in May, then hovered at around that level until the end of July, ICIS data showed.
Market players told ICIS that while domestic methanol prices have rebounded slightly since July, demand was still weak as compared to the beginning of the year.
China’s domestic methanol prices were currently at around CNY2,550/tonne ex-tank, based on ICIS data.
Other methanol producers in China include China National Offshore Oil Corp (CNOOC) and Inner Mongolia Boyuan United Chemical Industry.
($1 = CNY6.67)
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