Capacity continues to increase methanol upside limited

Capacity continues to increase Methanol upside
May 20:
Inside: Zhengzhou Methanol ME1409 contract closed up, the highest offer on the 19th 2622 yuan / ton, the lowest offer 2584 yuan / ton, closing at 2619 yuan / ton, compared with the previous trading day up 0.69%, 706 positions to reduce the volume, volume 59344 hands.
News: 1, Hebei Zhongxin glacial acetic acid plant plans to restart on May 20 as planned, currently without inventory. 2. On May 19, from January to April 2014, the cumulative methanol production reached 11.0157 million tons, an increase of 19.31% year-on-year.
In terms of spot: Jiangsu port methanol market is weak, Taicang import supply price is executed at 2680-2700 yuan/ton, domestic supply price is at about 2670-2680 yuan/ton, and Jiangyin Changzhou local source is at 2670-2680 yuan. / Ton, Nantong area offer more than 2780-2800 yuan / ton, low-cost shipping is not willing, the atmosphere in the morning trading is not good, the main low-end negotiations, short-term transactions difficult to see heavy volume.
Summary of views: In April 2014, methanol production reached 2.9899 million tons, an increase of 23.93% year-on-year. In January-April 2014, the cumulative production reached 11.0157 million tons, an increase of 19.31% year-on-year. As of the May 9th week, East China Port stocks 190,000 tons, an increase of 0.2 million tons from the previous week. After entering May, the methanol plant for early shutdown and overhaul continued to drive, and the oversupply of methanol continued to exist. As a result, the inventory of methanol decreased slowly. After entering May, the demand for acetic acid, methyl ether and MTBE recovered and the overall operating rate increased. A slight increase, but the overall can not change the weak trend of methanol shocks. Technically, the methanol 1409 contract oscillated upward, but the upside was limited. The top of the short-term line faced pressure near the 2636 line. In operations, relying on 2636 short-term wet storage, the stop loss was 2636.

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