Container Throughput and Freight Logistics Updates

From May 27 to June 2, the national freight logistics in China operated smoothly, albeit with slight declines in various metrics. The Ministry of Transport reported that the national railway transported a total of 75.90 million tons of goods, marking a 1.44% decrease compared to the previous period. Similarly, the total number of trucks passing through national highways was 53.33 million, a 1.77% drop. Container throughput reached 5.869 million TEUs (Twenty-foot Equivalent Units), reflecting a 5.17% decrease.

Energy Sector Updates

Methanol Projects and Market Dynamics

1. Major Methanol Projects: Recently, a significant milestone was achieved with the approval of the world's largest methanol project, boasting an investment exceeding 30 billion yuan. This project, with a capacity of 6 million tons of coal-based methanol, has been officially approved.

2. Green Methanol Initiatives: Chint New Energy has secured a record for its integrated project to produce 250,000 tons of green methanol and 20,000 tons of green aviation kerosene annually. The first phase will see the construction of a factory with an annual output of 100,000 tons of green methanol, with the second phase adding another 150,000 tons of green methanol and 20,000 tons of green aviation kerosene. The project is slated to commence in October 2024.

3. Methanol Pricing and Production: Yulin YanKuang recently set the starting price for methanol at 2,190 yuan/ton, with a total of 3,000 tons sold at prices ranging from 2,190 to 2,200 yuan/ton. The plant's first phase (600,000 tons/year) and second phase (800,000 tons/year) coal-based methanol units began maintenance on      May 26, with an expected duration of at least 30 days.

4. Methanol Market Prices: On June 3, Mingquan Group (formerly Shandong Mingshui) set its methanol price at 2,550 yuan/ton. The company's 600,000 tons/year coal-based methanol unit, producing 2,200 tons daily, is scheduled for maintenance starting June 12, lasting approximately 30 days.

5. Import and Export Data: According to customs data, China's methanol imports in April 2024 were 1.0952 million tons, a 35.12% increase from the previous month, with an average import price of $304.19/ton, up 1.23%. Methanol exports remained stable at 0.03 million tons, with an average export price of $776.12/ton, a 45.08% increase. From January to April 2024, China imported a total of 4.1817 million tons of methanol, a 5.61% year-on-year increase, while exports totaled 1.13 million tons, a 27.56% year-on-year decrease.

Chemical Industry Updates

Key Developments in Chemical Production

1. Bisphenol A: Shenma Corporation announced a temporary halt in the construction of its second phase 240,000 tons/year bisphenol A project.

2. Monoethylene Glycol: Zhejiang Petrochemical's plan to restart its 800,000 tons/year monoethylene glycol unit on June 1 was delayed due to technical issues, requiring an additional three to four days for resolution.

3. Soda Ash: Yuanxing Energy's Alashan natural soda ash project commenced its second phase construction at the end of 2023. The first phase has a design capacity of 5 million tons/year, while the second phase aims for 2.8 million tons/year, expected to be completed by December 2025. 

4. Soda Ash Inventory and Profitability: As of May 30, domestic soda ash manufacturers' total inventory was 818,200 tons, a 0.53% decrease from the previous period but a 397% increase year-on-year. Ammonia-soda enterprises' production profit was 456.59 yuan/ton, a 0.05% increase month-on-month but a 3.75% decrease year-on-year. 

5. Diethylene Glycol: From May 31 to June 2, the total shipment from two storage areas in Zhangjiagang was 3,296 tons. The inventory stood at 37,200 tons, with an estimated 14,000 tons of diethylene glycol expected to arrive at East China ports before the Dragon Boat Festival.

6. TDI: Xinjiang's major TDI plant, with an annual capacity of 150,000 tons, reported a stable operation and a May settlement price of 14,400 yuan/ton.

7. BDO: Inner Mongolia Huaheng's  104,000 tons/year BDO unit is operating normally, while another 104,000 tons/year unit is paused due to boiler issues. A third 104,000 tons/year unit, launched in mid-May, is running at low capacity.

8. Cyclohexanone: On June 3, Shandong Hualu Hengsheng's cyclohexanone unit, with a capacity of 560,000 tons/year, was operating normally. The price was raised by 200 yuan/ton to 10,300 yuan/ton.

9. Butadiene: On June 3, Shenhua Ningxia Coal's 64,000 tons/year butadiene extraction unit was running stably, with limited external sales and a price reduction of 70 yuan to 11,230 yuan/ton. Shandong Luqing Petrochemical's 140,000 tons/year butadiene unit was also stable, with 812 tons auctioned at a starting      price of 11,800 yuan/ton.

10. Liquid Ammonia: On June 3, Shandong Hualu Hengsheng's 600,000 tons/year liquid ammonia unit was operating normally, with a price reduction of 200 yuan to 2,850 yuan/ton and a daily sales volume of 500 tons.

11. Toluene: On June 3, Sinopec South China raised the ex-factory price of toluene by 100 yuan/ton, with Guangzhou Petrochemical's price at 7,700 yuan/ton and Maoming Petrochemical and Zhongke Refining's price at 7,650 yuan/ton.