26 October 2010 07:24 [Source: ICIS news]
By Heng Hui
Petronas of Malaysia was not concerned about the new trade policy on methanol, given current strong margins as Chinese prices remained high, a company source said.
“The net effect is only over 4%, and
As of last week, methanol was trading at around $360/tonne (€259/tonne) CFR China, its highest level since October 2008. This represented a 16% jump from the start of the year, based on ICIS data.
PT Kaltim Methanol Industri of Indonesia, meanwhile, was looking at an extreme measure of stopping exports to
Kaltim Methanol would be required to pay 9.4% tariff for product shipments into
“Everyone will complain except for the Saudis, and the real tax rate will be determined from 24 December,” said the Kaltim Methanol source.
China had launched the investigations on suspected dumping activities by Malaysia, Indonesia, New Zealand and Saudi Arabia in June 2009, as production rates at local plants tanked to just 30% in the first quarter and methanol prices declined $165-175/tonne (€134-142/tonne) CFR (cost and freight) China.
Methanol is used in the production of formaldehyde, methyl tertiary butyl ether (MTBE) and acetic acid. It also has fuel applications - dimethyl ether (DME), biodiesel - and could be blended directly into gasoline.
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