Methanol Weekly Report 01 July 2017

Weekly Price Trend: 26-06-2017 to 30-06-2017
 

The above graph focuses on the Methanol price trend for the current week. Prices have followed weak inclination for this week. By the end of the week prices were assessed around Rs.20.5/Kg for Kandla and Rs 20.5/kg Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have followed weak inclination and by the end of the week prices were evaluated at Rs 20.5/kg for Kandla and Rs 20.5/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 235-255/MTS. Prices have decreased by USD 5/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 278/mt.

• CFR China prices were assessed in the range of USD 266-286/MT prices have increased in compares to previous week.
• This week methanol prices have plunged as demand sentiments from end users have plunged.
• Southern Chemical posts plunge for Americas July methanol.
• Sailboat Petrochemical plans to raise the run rate of MTO unit in July, while Changzhou Fund Energy is unlikely to see an early restart of MTO plant.
• Demand growth is not fast, while on the supply side, the length is expected to grow longer as Shandong Xinneng Phoenix, Mingshui Dahua and Hualu Hengsheng are going to expand methanol production capacity.
• As per market players in near term methanol market is anticipated to remain bearish.
• Canada based Methanex has announced its ACPC for the month of July 2017.  There has been no change in Asian Contract Prices for this month.  Asian Contract prices are posted at USD 320/MTS. On contrary prices has been reduced heavily for European market. Earlier the prices were Euro 450/MT which has been reduced to Euro 320/MT.
• Crude oil prices have followed positive inclination as the fall in U.S. production has bolstered markets this week.
• On Thursday, closing crude values have increased.WTI on NYME closed at $44.93/bbl, prices have increased by $0.19bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.11/bbl in compared to last trading and was assessed around $47.42/bbl.
• After the steep drop in oil prices of recent weeks, market players said that especially hedge funds saw nice buying momentum and lower U.S. crude production was the trigger to act.
• U.S. crude output dropped 100,000 barrels per day (bpd) to 9.3 million bpd last week, the steepest weekly fall since July 2016.
• As per market players recently market is cyclically bullish within a structurally bearish framework, noting that global inventories were drawing, demand is high, OPEC could still make deeper cuts and U.S. producers could be discouraged by rising costs.
• OPEC delegates have indicated they will not rush to implement further cuts to crude output. However, pressure from investors amid a relentless global supply overhang could prompt the group to consider further steps to support the market at its upcoming meeting in Russia next month.

  $1 = Rs. 64.58
 Import Custom Ex. Rate USD/ INR: 65.15
 Export Custom Ex. Rate USD/ INR: 63.50