Methanol Weekly Report 08 July 2017

Weekly Price Trend: 03-07-2017 to 07-07-2017
 

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/Kg for Kandla and Rs 20/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/kg for Kandla and Rs 20/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 232-252/MTS. Prices have increased by USD2/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 284/mt.

• CFR China prices were assessed in the range of USD 263-293/MT prices have increased in compares to previous week.
• This week domestic methanol market has remained soft-to-firm no major deals and discussion has been heard.
• As per domestic market players, presently end users have adopted wait and observe stances as market is moving with uncertain velocity.
• Some end users are buying only need based material.
• This week China market remained volatile and today market closed on higher note in compare to previous week.
• China's Xinneng Energy plans to shut its methanol plant on 15 July.
• China market methanol stock is set to increase while demand sentiments have been sluggish. Demand from MTO industry also has been steady.
• There’re several methanol producers restarting their plants in July, Qinghai Salt Lake are going to restart their plants in July.
• As per market analyst, in near term methanol market will remain soft-to firm as demand sentiments will be sluggish and material will be available in ample quantity.
• This week oil prices have followed volatile inclination. On Thursday oil prices closed on slightly up note  after a sharp but short-lived boost from a much bigger-than-expected decline in U.S. inventories of crude oil and gasoline. WTI on NYME closed at $45.52/bbl, prices have increased by $0.39/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.32/bbl in compared to last trading and was assessed around $48.11/bbl. Market players said the surge was driven by traders closing out short positions, or bets that oil prices would fall.
• There's a lot of bearishness out there now the market is still believing supplies are not going to be in balance globally. Investors believe the OPEC will need to make further output cuts to offset thriving shale production in the United States.
• U.S. gasoline stocks dropped 3.7 million barrels in the most recent week, far exceeding the expected drop of 1.1 million barrels. Still, gasoline inventories remain about 6 percent above seasonal averages, so investors will watch for July data to see if demand is strong enough to whittle down stocks.

  $1 = Rs. 64.59
 Import Custom Ex. Rate USD/ INR: 65.65
 Export Custom Ex. Rate USD/ INR: 63.95