China Methanol Industry
Methanol is becoming the darling of the global economy. Methanol production process is relatively simple and diverse sources of raw materials, coal, naphtha and natural gas can be methanol. Methanol wide range of uses, and its downstream products as many as several hundred. In recent years, due to the strengthening of environmental awareness around the world, especially in the United States Congress on November 15, 1990 after the adoption of the Clean Air Act Amendments of methanol worth prepared by the global methanol demand growth to accelerate.
China’s methanol industry, the pace of development in no way inferior to any one country alone last five years of rapid development, China will rank first worldwide production of methanol. However, as the children are the same developmental stages, but heads high and can not prove that that is healthy. On the contrary, the heads may still be too high a disease.
Methanol is a low value added chemical products. Low cost competition is the core of such products, but also an important manufacturing enterprises to adopt competitive strategies, is the key to business to settle down. Need to optimize the various effects of low cost product cost factors of production, including the price of raw materials, process routes, financing costs, device size and logistics costs. In these respects, the current domestic methanol production, if compared with the international advanced level of PK, how is it?
Production cost: 200 U.S. dollars ton PK 80 U.S. dollars ton
Currently the general small scale methanol plant, and to use more coal and the first line, with coal as raw materials account for about 78%; unit of investment in high capacity, about foreign investment in large scale methanol plant 2 times, leading to the high cost of finance costs and depreciation . These all affect the cost.
It is understood that there are nearly 200 of China’s methanol production enterprises, but of which 10 million ton year over the device was only 20%, the largest methanol production plant capacity is 600,000 tons year, the remaining 80% are 100 thousand tons year the following devices. According to the pattern of such devices, the industry is generally estimated that, at present China’s methanol production costs about 1,400 yuan to 1800 yuan ton (about 200 U.S. dollars ton). Once the excess supply situation, the domestic methanol prices may fall to about 2,000 yuan ton, or even lower. This small scale production capacity, unit capacity investment in high domestic enterprises, the majority of methanol production will be pressure to surge.
And to the Middle East and Central and South America as represented by the general large scale methanol plant abroad. At present the largest international scale methanol plant production capacity has reached 1.7 million tons year. By the end of April 2008, the Saudi Methanol Company 1.7 million tons year methanol unit at the giant Al Jubail put into production, making the company’s five sets of large scale methanol plant’s total capacity to reach 4.8 million tons year. Large scale installation of foreign enterprises, public facilities, sharing investments less, and the use of natural gas line, the unit production capacity to invest a substantial decline in cost competitiveness has increased significantly. Petroleum and Chemical Planning Institute, according to analysis, the current foreign gas producer in the construction of large scale methanol production unit cost is only 60 ~ 80 U.S. dollars ton.
Moreover, foreign large scale methanol plant make more use of natural gas as raw material, use of natural gas into two or self heating conversion technology, including the German Lurgi Company, Topsoe, British chemical company ICI and Japanese technology companies such as Mitsubishi . Relative coal based methanol technology, natural gas conversion technology is mature and reliable, the scale of conversion of methanol is less affected by the size, installation compact, small footprint.
Although the international market in recent years, natural gas prices are also rising, but the foreign methanol producers rely on long term supply agreement will impact on the price factor to a minimum. In China, most of the methanol production using coal as raw materials, the limited size of gasification plant covers an area of major birth defects, and restricts to the large scale methanol production plant development. At the same time the sharp rise in coal prices in recent years have been right also has a certain cost advantage of coal based methanol have a significant impact, together with coal based methanol are mostly built in the western region, high transport costs. All these factors further weakened coal based methanol price competitiveness.
Foreign large scale methanol plant to focus upon the commissioning of the traditional sales channels can not digest the sudden increase in methanol. By 2010, foreign methanol at low impact on the Chinese market was little suspense.
Product energy consumption: 60 Ji J PK 30 GJ t t
The reality is: foreign large scale methanol production, advanced technology, strict management, low energy consumption, product quality and stability; domestic large methanol plant product quality has reached international level, but many small methanol or ethanol plant in conjunction quality was not stable.
According to the National Chemical Engineering Technical Committee, deputy director of Sinopec Ningbo Engineering Co., Ltd. Tang Qing, deputy chief engineer of introduction, the domestic coal based methanol per tonne of product energy consumption is 50 ~ 60 Kyrgyzstan coke, 1.6 tons of coal consumption is about 22 ~ 30 tons of water. Of natural gas as raw material for methanol production per ton of product energy consumption is about 40 GJ, 900 ~ 1150 cubic meters of natural gas consumption, water consumption by 16 ~ 20 tons. Methanol plant in China a small energy per ton of product is as high as 70 GJ. The foreign large scale methanol plant are basically natural gas as raw materials, and energy consumption per ton of product is only 25 to 30 GJ, 760 ~ 920 cubic meters of natural gas consumption, water consumption 10 ~ 15 tons.
In addition, since most of China’s use of coal based methanol production line, acid gases and ash emissions from large investment required to fund the building of more environmentally friendly disposal facilities. With natural gas as raw materials of foreign large scale methanol plant, the basic part of cleaner production, less impact on the environment, environmental protection and investment accordingly smaller.
Transportation costs: 55 U.S. dollars ton PK 25 U.S. dollars ton
Many industry experts have told reporters that the domestic methanol production in a congenitally deficient: China’s methanol production of raw materials, coal, natural gas, mainly in the more economically backward and inaccessible western part of China’s methanol market consumption centers in eastern and southern China. Methanol transported to the eastern and the western South China needs long distance rail or road transport, transportation costs, up to 400 yuan ton (about 55 U.S. dollars ton). Methanol producing and consumption in the far distance, resulting in the transport of methanol into China in the future development of the main bottlenecks.
Concentration of large methanol plant in the Middle East and Central and South America, but also the world’s most abundant natural gas resources in the area, resources, land and methanol production facilities and coastal areas close proximity of production facilities close to the loading docks of methanol, methanol products used in all sea transport easy transportation. According to statistics, from the Middle East and Central and South America and Australia region will be transported to Asia the main port of methanol per ton of product to only 25 U.S. dollars for freight and transportation costs are lower.
Moreover, in respect of logistics, even if the conditions are good, the domestic enterprises are also only a methanol plant and rail loading facilities, storage and transportation, the domestic is currently no national and no global methanol transshipment base, there is no large scale dedicated methanol vehicles. Most of foreign methanol producers around the world to build large scale methanol transit base for storage and transportation facilities, or long term lease to have their own transport fleet of methanol.
Investment model: go it alone PK co operation
When it comes to lack of domestic methanol production the day after tomorrow, industry experts believe that the major methanol plant construction is currently the most owned enterprises, few joint ventures. This is frivolous invested hundreds of million of methanol and downstream products project, undoubtedly increased the financing difficulty and investment risks.
Are mostly of foreign joint venture methanol plant construction and operation. Shareholders in general, consists of investors, patents, vendors and resource providers, and investors and shareholders entrusted to professional asset management companies to assist operations. That would be an effective solution to financing problems, lower cost of capital and investment risks, and in technology, raw material supply and product sales, etc. is guaranteed to maximize the optimization of various factors of production, improve project competitiveness.
Marketing models: self marketing professional vendors PK
Masatomo the Far East, according to company investigation, even though China has become the major methanol producer, but the domestic methanol production enterprises also are inward looking businesses, products, virtually all for the domestic market, construction projects, market analysis and decision making is almost totally dependent on domestic market, exports negligible simply too busy to attend to the international market demands and changes. This has led to the world’s largest methanol production capacity in China alone is the name of the first, the lack of understanding and control of the international market capacity, lack of international vision and concept of minimal influence on the international market.
Of foreign methanol producers are all international companies, products, production and sales of fully facing the international market, it has a good sales network and channels, the ability to control the international market is very strong. Such as Canada Mengtelisi (Methanex), Japan’s Mitsubishi and other companies more than 90% of the methanol products for export, Trinidad, Chile, Venezuela, New Zealand and the Middle East, such as methanol producing countries and regions, consumption of methanol in itself, and most of exports around the world.
Meanwhile, the domestic methanol, all products are basically on their own corporate sales, fragmented, there is no fixed vendors. Of foreign methanol producers usually have long term cooperation of professional vendors and well established global sales network, sales channel unimpeded. In addition to some large scale methanol production enterprises sell our products, but also use their own sales channels, and methanol production enterprises of other products. This enhanced control of the world methanol market!
