BEIJING, May 20 /PRNewswire-Asia/ -- Himfr's chemical industry expert reports that the methanol industry is now facing an excessive production problem, which combined with pressure added by imports, has been causing methanol prices to hover near the cost line for the past two or three months. The industry capacity utilization rate is low, and the factory shipment situation is not good, so it is expected that this situation will not pick up within this year.
In 2009 the domestic methanol industry working rate was only 35.42 percent, compared to 42.88 percent in 2008. The working rate declined due to excessive production and the impact of imported products. With this low working rate, methanol prices have declined dramatically. Methanol prices have been declining since May 2008. The current price of methanol has been around RMB 2000 / ton for two or three months. Many coal-methanol projects have experienced significant losses. However, investment enthusiasm in the methanol industry remains high. According to Himfr's statistics, China's methanol production capacity will continue to increase. demand is relatively stable for downstream products of methanol, including formaldehyde, dimethyl ether, acetic acid, and DMF (http://www.himfr.com/list-product-Chemicals-05000000-1.html ), but there will be no explosive growth. So what promotes the high investment enthusiasm? Himfr believes that enterprises are betting that there will be huge new markets for the future applications of methanol gasoline. Currently, methanol gasoline has caused a bit of controversy, since use is restricted, mainly because methanol gasoline will reduce engine life. However, there is another way to process methanol. Methanol is part of the coal chemical industry; it can be processed into olefins, ethylene glycol and so on. Himfr believes that there are also more promising applications. By the end of 2010, China's ethylene glycol production capacity will be nearly 4 million tons.
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