China methanol makers from medium-to-large coal methanol producers in China are feeling the pinch of rising costs whether in feedstock, inland transport and shipping. Coal prices, previously known as in abundance and unwanted in China, is the most common feedstock for methanol production in China.
Surging fuel oil costs making shipping more expensive especially since methanol cargoes are shipped within China via the country's rivers, even the inland road and rail transport has also become more expensive. On top of these factors, the yuan has appreciated and the government has curbed incentives for the methanol producers to export the product.
The greatest hit is of course the feedstock price of coal which has increased by 10-30% from last year forcing producers working with technology providers to have greater efficiency in coal gasification.
Surging fuel oil costs making shipping more expensive especially since methanol cargoes are shipped within China via the country's rivers, even the inland road and rail transport has also become more expensive. On top of these factors, the yuan has appreciated and the government has curbed incentives for the methanol producers to export the product.
The greatest hit is of course the feedstock price of coal which has increased by 10-30% from last year forcing producers working with technology providers to have greater efficiency in coal gasification.
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