As the world financial crisis spread to the real economy, the Chinese chemical companies unprecedented impact.

From the end of last year, foreign cheap alcohol imports surged, resulting in large-scale Chinese methanol producers cut or stop, and now less than 40% capacity utilization. “At this stage, and some time to come, the Chinese company’s main competitor methanol methanol production enterprises overseas, particularly in the Middle East, New Zealand’s manufacturers.” At the recently held second session of the International Methanol – DME / LPG chain market summit, China Supply and Marketing Co., Ltd. Shandong Yanzhou Coal Mining coal rank of methanol, said Deputy Minister Chuan Sun Yuzhu. Chuan Sun Yuzhu quantities into China, said in November last year, the overseas quantities of methanol pour into the Chinese market, the monthly number of imported methanol jumped from 100,000 tons to 60 million tons. According to Chinese customs statistics, China’s methanol imports in 2008 up to 1.434 million tons, the highest level since 2003. Methanol in China in December last year, imports 3.6 million tons in February this year, imports have soared to 591,000 tons, has reached 653,000 tons in March. In May, although some installations of the Middle East and Southeast Asia, but the number of methanol to the Hong Kong remained high.

With China’s rapid economic development, China’s demand for methanol has been occupied in the world. In recent years, China imports large quantities of methanol each year to create a huge impact on the domestic market. Source of imports from China methanol distribution, the Middle East largest number, 56% of total imports, followed by New Zealand, accounting for 32% share of the other smaller countries. The current changes in the domestic methanol market has remained consistent with the foreign. Foreign manufacturers have installed large scale methanol, advanced production technology, the advantages of low raw material prices, and recent further reduce tariffs, such as zero tariffs on the 10 ASEAN countries, New Zealand tariff rate to 3% of foreign products will undoubtedly further enhance the competitiveness of . Match for natural gas, methanol, coal-based methanol plant size from the domestic and international perspective, the Middle East and Central and South America as represented by general large-scale methanol plant abroad.

Currently the largest international methanol plant capacity has reached 1.7 million tons / year. Saudi Arabia last year as the company’s annual output of 1.7 million tons of methanol a huge methanol plant in Al Jubail in operation, the company’s five sets of large-scale methanol plant’s total capacity to produce 4.8 million tons. Installation of foreign enterprises large and small utility-sharing investments, and the use of natural gas line, a substantial decline in investment per unit capacity, cost competitiveness has increased significantly. Currently the foreign origin of natural gas in large-scale methanol plant construction cost of only 60 ~ 80 U.S. dollars / ton. Most of the Chinese methanol producers with coal as raw material gasification plant covers an area of limited size and large birth defects restricted to large-scale methanol plant development. The largest single set of gas methanol plant size is about 600,000 tons annually, most of the single set of scale methanol plant to produce natural gas, 100,000 tons, compared with a big gap between international standards.

From the energy point of view, now all the foreign large-scale methanol plant using natural gas as basic raw material, energy consumption per ton of product, only 25 to 30 GJ Ji, natural gas consumption of 760 to 920 cubic meters of water 10 to 15 tons. China’s energy consumption per ton of coal-based methanol for 50 to 60 GJ Ji, about 1.6 tons of coal consumption, water consumption from 22 to 30 tons; to natural gas as raw material production facilities, energy consumption per ton of methanol is about 40 GJ 1100 ~ 1260 cubic meters of natural gas consumption, water consumption 16 to 20 tons. Small-scale methanol plant in China energy consumption per ton of product as high as 70 GJ, the level is higher than abroad. Shows that domestic technology, compared with foreign advanced technology, there is still a gap. In addition, since most of China uses coal-based methanol production line, acid gas and ash emissions from large, need to invest more money building environmental treatment facilities. And foreign large-scale natural gas as raw material methanol plant, the basic part of cleaner production, low environmental impact, environmental protection investment was smaller.

Cheap freight transportation by sea of raw materials and from the localization device, at present most of the foreign large-scale methanol plant built in the rich areas of cheap natural gas resources. Middle East and Central and South America is the world’s most abundant natural gas resources in the area, resources, and methanol production unit to the short distance and coastal areas, production facilities close to the loading dock of methanol, methanol produced by using sea transportation, transportation is convenient. According to statistics, from the Middle East, Central and South America and Australia to the Asian region will transport the main port of methanol per ton of product to only 25 U.S. dollars for freight, transportation costs low. China’s methanol production raw materials, coal, natural gas, mainly in the more economically backward and inaccessible west, while the methanol market consumption centers in East and South China. Methanol transported to the western and southern regions of East China needs long-distance rail or road transport, transport costs of up to 600 yuan / ton. Methanol far distant place of origin and consumption, transport problems are the development of China’s methanol one of the main bottlenecks. Thus, relying on foreign methanol advantage of its low raw material has a very strong competitive edge, especially relative to the target market, price, region, sales and so competitive advantage. Chuan Sun Yuzhu that further integration of China’s methanol business is only the upstream and downstream, through scientific management, the implementation of vertical strategy to raise the competitiveness of our products. In Yanzhou Mining Group, for example, should make full use of the advantages of the upstream and downstream integration, select the appropriate time, continue to build large-scale methanol plant downstream, further stretching the industrial chain to increase the marketable value-added downstream products of methanol, to meet the market demand, thereby improving their overall competitiveness and sustainable development.

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