Network PVC plastic raw material market remained stable, individual price move. The downstream demand is relatively flat, market trading atmosphere light. In the short term, the market is expected to PVC market will continue to run high.

On Wednesday, the international oil prices continue to rise. NYMEX crude oil closed up 2.60%, to $51.60 / barrel. Brent crude rose 1.92%, to $52.67 / barrel.
Wednesday (October 19th) Asian ethylene market price stability, northeast of CFR at $1069.5-1071.5 / ton price steady; prices held steady at CFR Southeast Asia 1039.5-1041.5 USD / ton.

Although the coastal areas (Jiangsu, Zhejiang and Southern China area) methanol 949 thousand and 600 tons in inventory, but the overall circulation can supply only 230 thousand tons, 55 thousand tons less than in October 9th. However, affected by the typhoon, foreign methanol plant maintenance and other factors, the recent part should be in late September to the end of the month to Hong Kong import cargo postponed to Hong Kong, this should be in the mid to late 9. Port of Iran and Oman also delayed unloading cargo loading port, and the gap between supply and demand problems considering the recent part of the shipment there are also frequent change situation in Hong kong.

Overall, there is more support methanol fundamentals, a strong price makes methanol is the raw material costs continue to uplift; two is the majority of domestic equipment maintenance or overhaul, and olefin producing areas northwest just need support in the region to reduce the supply; three is the traditional peak season demand, inventory is low, prices firm in Shandong; four is the coastal area off the sources of imports to Hong Kong, circulation of tight supply. In wave theory, the current rise since August 30th in the third wave, after the adjustment is expected to continue to rise.

As of October 13th, the operating rate of methanol was 62.56%, a decrease of 3.39% compared to September 29th. Among them, Shanxi coking October 9th overhaul 15 days, Yanzhou of Yulin can 600 thousand tons in October 15th to overhaul 10 days, Shaanxi Xianyang chemical 600 thousand tons in October 17th parking for 2 – 3 days, in October 16th 500 thousand tons of electric yinglite device maintenance to November 3rd, Sichuan Chuanwei 1 million 120 thousand tons / year methanol plant in October 11th later entered the parking overhaul Shanxi, China Everbright in October 11th to overhaul 20 days, Shanxi plans to the end of October 3, Lubao overhaul 4 days, plus the Yulin coal methanol plant overhaul, the latter will have about 100000 tons of methanol production needs. The maintenance of a series device has brought positive support to the market.

The peak demand season

Methanol market in the traditional off-season demand for half a year, while the second half of the overall demand in the first half of the year. In August 7, the downstream industry in consumption season, formaldehyde and other manufacturers of raw materials inventory is generally low. In cold weather, many traditional methanol downstream industry fully warmed up, the enterprise started raising the enthusiasm, in the rigid demand concentrated outbreak situation, formaldehyde and other traditional downstream industries began to enter the stocking cycle, driven by rising demand for methanol market. The emerging MTO enterprises have maintained high load operation, needs strong support.

international crude oil rising continuously, after the first trading day of methanol directly gapped, rose 4.78%. Then methanol continues to rise, Wednesday Chonggao down, close Doji, Thursday to continue to adjust. Methanol is the rising trend of the market is established, the latter still upside.

The raw material price is strong

Since this year, coal spot prices up, compared with the end of last year rose nearly doubled. The main reason is to promote relatively tight supply of coal prices, although the national development and Reform Commission launched a response mechanism, increase the daily 500 thousand tons of coal production capacity, but low inventory and transportation bottlenecks, the next period of time, supply tensions will not change too much.

In addition, the recent coal prices rose, the anthracite market driven very obvious role, including the end of coal, lump coal prices are different degree of up. After entering October, civilian needs open, downstream chemical users also need winter storage, so the demand is obviously improve the early coal resources, in tight supply environment, short-term market or anthracite inflation to fall. The price of raw materials makes strong methanol cost uplift.

domestic caustic soda prices are still rising trend. 32% ionic membrane caustic soda market around the low-end goods price between 680-810 yuan / ton, the average price of 715 yuan / ton; high-end goods price between 720-940 yuan / ton, the average price of 802 yuan / ton; 99% caustic soda market around the low-end goods price between 3000-3750 yuan / ton, the average price of 3450 yuan / ton price of high-end goods; in between 3400-3900 yuan / ton, the average price of 3635 yuan / ton. The recent overhaul in Shandong area local manufacturers device more, market supply is tight, inventory pressure is relatively small. Downstream aluminum businesses demand procurement, caustic soda traders cautious wait-and-see, but many sales price. Upstream raw material more stable salt the main market, due to tight supply of caustic soda, caustic soda is still rising may.