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BEIJING, June 24, 2009 – China Ministry of Commerce (Mofcom) announced statement No.35 that China has begun an anti-dumping investigation on methanol imported from Saudi Arabia, Malaysia, Indonesia and New Zealand.

On May 4, 2009, Mofcom received the methanol antidumping application from some of main China domestic producers which including Shanghai Coking & Chemical Co., Inner Mongolia Yuanxing Energy, Yankuang Lunan, Yankuang Cathay, Pingmei Lantian etc. The product number of imported methanol is 29051100 in China Customs.
 
According to the Antidumping Regulation of the People''s Republic of China, Mofcom today started the investigation on the methanol dumping and dumping margin imported from Saudi Arabia, Malaysia, Indonesia and New Zealand, as well as damage on Chinese mainland methanol industry. It said investigations are normally completed within a year, but could be extended another six months in "special circumstances".

According to the data from ASIACHEM Consulting, imported methanol though once accounted for a considerable proportion in China’s methanol consumption, was dramatically reduced along with the development of China’s national methanol industry. From 2002 to 2007, proportion of imported methanol was continuously reduced from 45% to less than 10% and the figure indicates a slight pick up only to 12% in 2008. But from Jan. to May in 2009, the imported methanol volume went up sharply with monthly average 600 kt, accounting for 43% in methanol consumption. The exported methanol reduced by 300 tons every month.

Over the past year, East China methanol price dramatically fall down from the 4930 RMB/ton in Q2 2008 to the currently 1900 RMB/ton. This result is caused by both the economic crisis and the inflow of the low cost overseas methanol product. The local producers agreed that China domestic methanol industry had been hit by the increasing imports and decreasing price, so the government is asked to start antidumping to improve the methanol market condition.
 
The 2nd ASIA METHANOL & DERIVATIVES SUMMIT will be organized by ASIACHEM Consulting in Nov. 2009, the Latest Asia methanol production & market and the new methanol derivatives utilization like olefins, gasoline, DME will be focused.

The Methanol import accounts for total consumption as the following figure.

 Source: ASIACHEM Consulting