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China Methanol Industry Report, 2007

Published: Oct/2007

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Report Code: EA002 Enterprisewide  USD $ 2,850
 

The production of methanol in China takes coal as the raw material. There are three main regions in China that produce methanol, South China, East China and North China. Production of the above mentioned three regions each takes 27.11%, 23.79% and 16.63% of the national total. In 2005, home yield of refined methanol amounted to 5.362 million tons, up by 21.62% year-on-year. The year 2006 saw a breakthrough in refined methanol production, and the yield hit 7.6225 million tons. 

There are now about 200 methanol producers in China but most of which are small sized and scatted. Only few companies have a capacity of 100,000 tons, namely Sinopec Sichuan Vinyion Factory, Daqing Oil Field Methanol Plant, Shanghai Coking and Chemistry Corporation. Shanxi Yulin Natural Gas Chemical Industry Co. Ltd, Changqing Oil Field and China Natural Gas Qinghai Branch. In 2006, home capacity of methanol amounted to 11.17 million tons. Besides, the import and export volume stood at 1.128 million tons and 0.19 million tons respectively in the same year. China has become the second biggest consumer of methanol around the world.

Equipments newly built in 2006 are relatively concentrated. And domestic production of methanol in 2006 hit 11.17 million tons, up by 21.16% year-on-year. But batch production didn't form until the end of 2006. The structure of methanol consumption in China is a bit similar to that of the foreign countries'. The biggest consumption field is to produce formaldehyde, taking 40% of total consumption. The second biggest consumption field rests with MTBE and acetic acid, a respective share of 6% and 7%. In recent years, the consumption of methanol fuel grows quite fast. In spite of no relevant laws and regulations, yet taking methanol as fuel has become one of main driving forces to methanol demand.

Main areas consuming methanol are East China and South China, where also collectively produce the downstream products like formaldehyde, MTBE, acrylic ester and acetic acid; while places mainly consuming methanol fuel are Shanxi and Henan provinces. As for methanol imports in 2005, Jiangsu province took the largest share of 62.28%, followed by Guangdong 28.28%, Fujian 4.11%, and Zhejiang 3.34%. The above mentioned provinces all lie in the east China and South China, and the structure of imports also shows the regional distribution of methanol consumption.



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