What are the upstream and downstream markets for methanol? What does upstream and downstream mean here?

Upstream and downstream companies refer to the relative positions in the industry chain where the companies are located.

In this context, the upstream enterprises of methanol refer to the raw materials for producing methanol, and the downstream enterprises of methanol are the enterprises that further process and modify methanol, and transform methanol into actual products in production and life.

The upstream market of methanol mainly refers to the raw material market of methanol. China's methanol production routes are roughly divided into three kinds: coal to methanol, natural gas to methanol, and coke oven gas to methanol. Coal-based methanol has become the most dominant production method for methanol production in China, accounting for 77.3% of the national total production capacity, followed by natural gas-based methanol, accounting for 13.2% of the national total production capacity. Therefore, the coal and natural gas market is the upstream market of methanol.

The downstream market of methanol refers to the market where methanol is further processed and converted into products. The downstream products of methanol are roughly as follows: Formaldehyde, Glacial Acetic Acid, Dimethyl Ether (DME), MTBE, Dimethylformamide (DMF), Methylamine, Methyl Formate, Chloromethane (CMS), Ethylene Glycol, Dimethyl Carbonate (DMC), Dimethyl Sulfate, Methyl Methacrylate, Polyvinyl Alcohol (PVA), Dimethyl Terephthalate (DMT), Dimethyl Sulfoxide (DMSO), MTO/MTP, methanol proteins, synthetic rubber, methanol fuels, fuel cells, and more. Now. Methanol to olefin is still the main driving product, steadily ranked the first downstream consumption of methanol, with a consumption share of 47.8%; the second-ranking product is methanol fuel (including methanol gasoline, methanol automobile, marine and boiler fuels and other comprehensive fuel demand) accounted for 15%; and the third is formaldehyde, with a share of 11%. Other downstream consumption generally accounted for a limited share.

Upstream enterprises are relative to downstream enterprises, referring to enterprises and manufacturers at the initial stage of production and business in the industry, and these manufacturers mainly produce manufacturers of raw materials and primary products, etc. necessary for downstream enterprises. Upstream enterprises and downstream enterprises are interdependent. Without the raw materials provided by the upstream enterprises, the downstream enterprises are just like a clever woman who can't cook without rice; without the downstream enterprises to produce products into the market, the materials of the upstream enterprises will be of no use. Therefore, the upstream enterprises and downstream enterprises in various industries should be the same sweet **** bitter, mutual assistance and mutual profit, *** with the survival and development. Although there are differences in location, but all have their own indispensable value.