MYSTEEL: China's chemical firms hold off on coal restocking despite strong profits

Despite enjoying healthy profit margins, China's coal-to-methanol (CTM) producers are holding off on restocking thermal coal, awaiting clarity on price trends, Mysteel pointed out in its latest report on the commodity.

CTM producers are currently seeing profit margins of around Yuan 75/tonne ($10.6/t) on methanol production, according to Mysteel's calculations. Nonetheless, they are currently in no rush to replenish coal inventories for the typical peak season for methanol consumption starting in October in China, sources said. "We're waiting for a clearer