Methanol Weekly Report 13 May 2017

Weekly Price Trend: 08-05-2017 to 12-05-2017

• 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.17/Kg for Kandla and Rs 17/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 17/kg for Kandla and Rs 17/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 219-239/MTS. Prices have plunged by USD 2/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 294/mt.

• CFR China prices were assessed in the range of USD 250-270/MT prices have decreased in compares to previous week.
• As per Industry players, recently methanol supply is available in ample amount while demand sentiments has been bearish from end users and on account of uncertain impending outlook most of the players have adopted wait and watch stances. Presently buyers are not offering for bulk quantity of material excepting need based.
• As per market predictors in Indian market buyers further believe softening in prices due to heavy supply of the chemicals in the month of May. Similar trend are seen in other Asian countries like Taiwan, South Korea and China.
• As per report, Brunei Methanol Company's plant restarts on 8 May.
• Iran is planning for ‘mind-boggling’ methanol expansion consultancy.
• Iran’s Zagros Petrochemical plans to start again methanol unit in next few days.
• China's Shaanxi Changqing Energy plans to shut methanol plants.
• According to report, in the month of February India’s methanol imports were at 119,342 tonnes.
• Methanol plant has been shut down by League Chemical. The plant is based at Shandong in China and has the production capacity of 250 Kt/year. Earlier the unit was shut down on 6th may and will remain off-stream for around three weeks. Methanol unit will resume its production on 20th May 2017.
• This week oil prices have followed up inclination with minute plunge. Last week U.S. crude stockpiles posted their biggest drawdown since December as imports dropped sharply, while inventories of refined products also fell, helping boost oil prices that have been weighed down by concerns about oversupply.
• On Wednesday oil prices began looking higher after a string of positive data on oil stocks in the US helped to improve the market mood.
• According to report a large part of the excess supply overhang contained in floating storage facilities has been reduced and the improvement in the world economy will help support oil demand too.
• However, continued rebalancing in the oil market by year-end will require the collective efforts of all oil producers to increase market stability, not only for the benefit of the individual countries, but also for the general prosperity of the world economy, As per report.
• Opec is due to meet later this month in the hope of striking a second deal to secure a year of production cuts. The twelve member states will be joined by Russia, but US production remains a concern.
• On Thursday, closing crude values have increased.WTI on NYME closed at $47.83/bbl, prices have increased by $0.50/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.55/bbl in compared to last trading and was assessed around $50.77/bbl.

  $1 = Rs. 64.30
 Import Custom Ex. Rate USD/ INR: 65.10
 Export Custom Ex. Rate USD/ INR: 63.40