12 October 2010 08:43 [Source: ICIS news]
SINGAPORE (ICIS)--XinAo Group expects to restart its 600,000 tonne/year coal-based methanol plant at Erdos in China's northern Inner Mongolia region at the end of October after a turnaround, a company official said on Tuesday.
The unit was shut on 20 September for scheduled maintenance, the official added.
Market players told ICIS that China’s methanol prices were on a downtrend for the first five months of the year as a result of weak downstream demand, high inventories as well as the anticipation of additional product from new methanol units.
Domestic Chinese prices had decreased from around yuan (CNY) 2,800/tonne ($420/tonne) ex-tank in the beginning of the year to around the CNY2,100/tonne ex-tank level in May, then hovered at around that level until the end of July, ICIS data showed.
Despite the fact that domestic methanol prices have rebounded slightly since July, demand was still weak as compared to the beginning of the year, said market players.
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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