Methanol Weekly Report 13 March 2020
Weekly Price Trend: 09-03-2020 to 13-03--2020
- The above graph focuses on the Methanol price trend for the current week. Prices have remained stable for most of the week. Domestic prices were assessed at the level of Rs.23.25/Kg for this week. There has been slowdown in domestic values.
- By the end of the week prices were assessed around Rs 23.25/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol have remained vulnerable and were assessed around Rs.23.25/kg for this week for bulk quantity.
- CFR India prices were assessed around USD 189/MTS, reduced by USD 11/MTS for this week. There has been slowdown in overall petrochemical market across the globe.
- China market also reduced for this week. CFR China prices were assessed around USD 218/MT for this week.
- The three major Iranian Methanol producers has restarted their units last month and the recent start-up at a new Iranian methanol producer is expected to weigh on Asian methanol prices.
- At least 100,000 mt of Iranian methanol has been fixed to arrive in China next month, while tanks at East China ports are full with product because downstream demand is weak due to global pandemic coronavirus.
- Benzene the major source for aromatic products has slightly reduced for this week. FOB Korea values for Benzene were assessed around USD 525/MT for this week, reduced by USD 95/MTS for this week while CFR China prices were assessed at the level of USD 545/MT for this week again reduced by USD95/MT for this week.
- Global petrochemical markets crashed this week heavily as Coronavirus declared pandemic. This virus continues to spread in Asian countries. In a major decision, US government has cancelled all its air travel from Europe for 30 days. It has created a major uncertainty for producers, traders and end-users affecting heavily to the Asian market for time being.
- The pandemic has already affected gasoline demand, which affects gasoline blendstocks like mixed xylenes, toluene and MTBE, a source said, adding that if the economic situations does not improve "people will stop buying clothes and pet bottles, which will affect the entire polyester chain."
- Global consumer demand is slowing and this will exacerbate bearish market fundamentals in the methanol market, trade sources said.
- On Thursday, closing crude values have decreased. WTI on NYME closed at $31.50/bbl. Prices have decreased by 1.48/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is decreased by 2.57/bbl in compare to last closing price and was assessed around $33.22/bbl
$1 = Rs. 73.89
Import Custom Ex. Rate USD/ INR: 74.25
Export Custom Ex. Rate USD/ INR: 72.55
