Published on April 18, 2017
Prices of domestic methanol product plunged notable in one month duration. In the month of March average methanol prices were assessed at Rs 29/kg although presently prices has ascertained in the range of Rs 22-23/kg. A sharp plunge in the prices was on account of good amount of material availability and bearish sentiments from downstream sectors.
Previous week CFR India prices of methanol were assessed in the range of USD 288-308/mt and CFR China prices were remained in the range of USD 281-301/mt.
As per the market report, in china market methanol prices have sharply increased in early April in anticipation of plant shut down. Though, the market appears to settle uptrend with the higher price as some plants are to be resumed. Downstream plants are not interested to buy high-priced feedstock methanol. Then, the price drops sharply then seen in early Apr.
In China demand from downstream sectors remained subdued by environment-protecting requirement. Demand for methanol shrank with downstream plants consuming feedstock methanol from their stocks only.
China based CNOOC has shut its methanol plant from 18th April which is having the production capacity of around 6,00,000 mt/yr. As per source, Singapore March methanol imports have increased 8.9% year on year.
In near term methanol market outlook will remain bearish demand will stay constrained and with the start of plant supply is anticipated to go up. Demand for methanol in MTO production is expected to decrease further, said by market players.
