Methanol Weekly Report 06 Oct 2018

Weekly Price Trend: 01-10-2018 to 05-10-2018

• The above graph focuses on the Methanol price trend for the current week. Prices increased heavily for this week in domestic market.
• By the end of the week prices were assessed around Rs 35.5/Kg for Kandla and Mumbai ports.
• Domestic prices have increased by Rs.4/Kg for bulk quantity in the span of one week. Rise has been rise in domestic values on back of limited supply in domestic market.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol prices remained firm and increased by Rs.4/Kg by end of the week and were assessed at the level of Rs 35.50/kg for Kandla and Mumbai ports.
• CFR India prices were assessed around USD 395/MTS, increased by USD 5/MT for this week. On other side CFR China prices remained unaffected this week and were assessed at USD 411/MT.
• Surging of values has been dominant since last one month. Average prices for Methanol have increased by more than 9% since August. Prices used to hover in the range of Rs.30-30.5/Kg and have now reached the level of Rs.35/Kg.
• The other major factor is stupendous increased in demand in local industry. Demand from paint industry has always been a major contributing factor during this festive season. Domestic consumption for paint industry increase heavily as people opt for painting and renovation of their properties.
• Declining Indian currency is creating new records against dollar and is also one of the main reasons for rise in Methanol prices.
• There has been heavy fluctuation in crude prices in this week. As the month of November is approaching fast the heat of sanction felt in the crude values across the world.
• On Thursday crude prices plunged due to rise in the inventory levels in US. But this hike was again pulled back on Thursday. Saudi Arabia and Russia has stated they will increase the crude supply but could not fill the void created by disruption of supply from Iran.
• With short supply from the price for crude is likely to reach a mark of $90 to $100 per barrel. On Wednesday, Saudi Energy Minister Khalid al-Falih said the kingdom was pumping near record levels and would raise output in November. Saudi Arabia is one of the few countries with the ability to significantly raise output. Many experts believe that the spar capacity of specified by Saudi is merely a statement but does exist in reality.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $74.33/bbl. Prices have decreased by $2.08/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $1.71/bbl in compare to last closing price and was assessed around $84.58/bbl.
• Domestic manufacturer GNFC has also increase prices heavily and were selling its product at Rs. 36.00/Kg.

PLANT NEWS
Kaltim Methanol Industri’s plans to shut its methanol plant
Kaltim Methanol Industri’s plans to shut its methanol plant for maintenance turnaround in mid-Oct. The plant is based at Kaltim Industri Estate Bontang, Indonesia. It is having the production capacity of 660,000 tonne/year.

$1 = Rs. 72.195
Import Custom Ex. Rate USD/ INR: 74.60
Export Custom Ex. Rate USD/ INR: 72.90