Methanol freight rates rise in China’s Guangzhou

12 July 2012 04:11  [Source: ICIS news]

SINGAPORE (ICIS)--China’s methanol freight rates have increased in Guangzhou city in Guangdong province, south China, after the provincial government on 3 July put in place tighter regulations on the transportation of dangerous chemicals, industry sources said on Thursday.

The move follows a traffic accident on 29 June, in which a truck and an oil tanker collided on a highway in the city, resulting in an explosion which killed 20 people and injured 31 others, they added.

Methanol freight rates rose by yuan (CNY) 20-30/tonne ($3-5/tonne), or 50%, from 29 June to CNY60-90/tonne in response to the tighter regulations on 3 July, a south China-based producer said.

However, methanol buyers did not accept the higher costs and this weighed on methanol spot prices, a trader said.

Methanol prices were at CNY2,700-2,730/tonne ex-tank south China on 11 July, down from CNY2,740-2,760/tonne 29 June, according to Chemease, an ICIS service in China.

The Guangzhou traffic police force has set up 15 stations to check on the transportation of hazardous goods until 31 December 2012 so as to prevent major traffic accidents, according to a statement on the Guangzhou Provincial Public Security Department website.

($1 = CNY6.37)

Additional reporting by Sam Liang

By: Viola Pan
+65 6780 4359

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