SINGAPORE (ICIS)--China’s Shandong Yankuang restarted its 500,000 tonne/year methanol plant on 8 January, a company source said on Thursday.
The plant, located in Shandong province in eastern China, was shut down for maintenance on 6 January, the source added.
“We are running [the plant] at low rates and expect to achieve on-spec production from 11 January,” said the source.
Methanol prices in Shandong are expected to fall on increased supply, while demand from the downstream formaldehyde sector is expected to be bearish as production will slow down during the Lunar New Year which begins on 31 January, said market participants.
Methanol prices in Shandong were at yuan (CNY) 2,690-2,720/tonne ($445-450/tonne) EXW (ex-works) on 9 January, unchanged from the previous day, according to Chemease, an ICIS service in China.
($1 = CNY6.05)