Methanol Weekly Report 11 Jan 2019

Weekly Price Trend: 07-01-2019 to 11-01-2019

• The above graph focuses on the Methanol price trend for the current week. Prices remained highly vulnerable for this week. There has been increase in values for this week.
• By the end of the week prices were assessed around Rs 22.25/Kg for Kandla and Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol prices improved with correction demand.
• In last few weeks there has been abundant supply in domestic market leading to heavy decline in domestic values.
• Prices in the domestic market increased and were assessed to the level of Rs.22.25/Kg for bulk quantity.
• CFR India prices were assessed around USD 234.5/MTS, slightly increased by USD 0.5/MT for this week. On other sideCFR China prices increased by USD 3/MT for this week.
• Crude prices remained volatile throughout this week. There has been rise decline in crude prices since December. The impact is seen all the major petrochemical prices. The experts believe it to be meltdown of some giant economies of the world.
• China is the major country Asia facing the huge slowdown in its economy. Oversupply with limited demand of petrochemical has been pushing the price to melt further.
• Experts do believe that now Brent and WTI are expected to trade between $60 and $70 a barrel by the second half of this year, unless a sharp global economic slowdown affects the outlook for global oil demand.
• While OPEC is expected to cut its output in 2019 in an attempt to balance the market, US production should maintain its upward momentum.
• Oil tripped on Friday amid concerns and apprehensions over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb. 

PLANT NEWS

Two new Methanol units to be started by America

• Two new Methanol units are scheduled to start in 2019. They will be based one in America and the other Trinidad and Tobago. Mitsubishi is a major player in the Trinidad plant at La Brea, which is 470 miles from Jose, Venezuela, where the Japanese giant operates two Metor methanol plants.
• Aside from Venezuela’s current economic catastrophe in progress, another disadvantage to having plants in the South American country (according to a source close to the project) is that methanol shipped from there to the US is not duty-free.
• Methanol from Trinidad comes into the US duty-free while shipments from Venezuela are hit with a 5.5% import tax. 

$1 = Rs. 70.49

Import Custom Ex. Rate USD/ INR: 71.25

Export Custom Ex. Rate USD/ INR: 69.55