Higher tax rebates unlikely to boost Chinese methanol exports
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China Finance Ministry recently announced that from 1 April, export tax rebates will be increased for more than 3,802 items including textiles and garments, steel, nonferrous metals, petrochemicals, electronics and light industrial sectors. The export rebates for methanol will be increased to 11% from 9% with effect from 1 April.
Methanol anti-dumping ---- Focus on dumping or not
China had witnessed a flood of imports of several key petrochemical products, registering huge import volume increases as shrunk global demand. Also for methanol industry, it has become the most impacted sector.
Analyze from three factors such as output, operating rate, import volume, market portion and prices to see if the domestic methanol market is impacted by ample import cargo.
Output and operating rate:
Domestic methanol operating rate dropped to 30% from 50% since October of 2008, up to the first quarter of 2009, the operating rate was less than 30%.
It is notable that the original expansion capacity of China methanol was 12m tonnes in 2008, but by the end of 2008, domestic expansion capacity was less than 7m tonnes.
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