The prices of China's methanol futures would have limited room for further gains on over capacity, weak demand in the downstream and increasing supply in spot market, according to AVIC Futures.
Some methanol futures producers lowered ex-factory methanol prices by 30 yuan to 100 yuan per tonne in last week on high levels of stocks. Averaged methanol prices stood at 2,290 yuan/tonne on Monday in east China's Shandong province, 70 yuan/tonne lower than the same period of 2014.
China's methanol producers had 54.77 percent of operation rate on average in last week, 0.24 percentage point higher than the same period of 2014.
The operation rates with methanol producers may see further improvement on restarting of more methanol facilities.
The price of main methanol futures product MAL8 increased to 2,654 yuan/tonnes on April 28 from 1,897 yuan/tonne on January 13.
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