Published on September 20, 2017
Methanol prices have increased from the start of August and reaches to its high point in early September. After wards prices has been declining as demand has plunged and material availability was sufficient.
In the August average methanol prices were evaluated at Rs 23.71/kg while in early Sep methanol prices were ascertained at Rs 33.5/kg but again prices has dropped to the level of Rs 29/kg. Market has revealed volatility with fluctuation in the prices.
Presently market players are concerned that how methanol market will budge in near term?
As per market participants September and October are peak season for consumption and investment and market players are also optimistic for upcoming outlook.
There are some supportive factors which illustrate that methanol market approaching for positive outlook.
- In China, the start up of some plants has been delayed and now it is anticipated that soon the new plants is set to start in 2017.Which will enhance the demand for methanol. Moreover, this month the average operating rate of methanol plants in operation has declined.
- In Iran, Saudi Arabia and Oman the operation of several plants have been unsteady resulted delayed shipments to China. As per market source it is anticipated that the import in near term also will remain same. Brunei’s BMC plans to shut its plant in H2 Sep for maintenance for around 40-45 days having production capacity of 850kt/yr plant. Indonesia’s KMI and Malaysia’s Petronas are also planning to shut their plants in Oct for about 40 days having the production capacity of 660kt/yr and 720kt.
- The impact from environmental protection is going off and the demand for methanol from downstream sectors plants will go up. Additionally, some buyers also preparing for methanol stocks for approaching National day holiday in early October.
As per the analysis it is anticipated that upcoming outlook for methanol will be positive as demand will boost and supply will be limited.
