Methanol Weekly Report 14 February 2020
Weekly Price Trend: 03-02-2020 to 07-02--2020
- The above graph focuses on the Methanol price trend for the current week. Prices have fluctuated for most of the week. Domestic prices were assessed at the level of Rs.24/Kg, increased by Rs.2/Kg for this week.
- By the end of the week prices were assessed around Rs 24/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol have remained firm and strong throughout this week. Prices in the domestic market were assessed at the level of Rs.24/Kg for bulk quantity.
- CFR India prices were assessed around USD 205/MTS, with plunge in prices of USD 5/MTS for this week.
- China market also remained weak for this week. CFR China prices were assessed around USD 226/MT for this week.
- Benzene the major source for aromatic products also decline heavily for this week. FOB Korea values for Benzene were assessed around USD 659/MT for this week, remained unchanged for this week while CFR China prices were assessed at the level of USD 660/MT for this week again reduced by USD20/MT for this week.
- Oil futures ended higher Thursday, extending their streak of gains to a third straight session, as the potential for OPEC+ output cuts fueled some optimism, despite a rise in the number of COVID-19 cases in China and lower forecasts for oil demand growth.
- Analysts said the fall in crude oil futures in the initials of the week was mostly due to trimming of positions by traders amid weak spot demand.
- Crude prices are cautiously eyeing a three-day winning streak amid a broader bearish move, as potential OPEC+ action and efforts to contain COVID-19 spread leave room for optimism,” said Robbie Fraser, senior commodity analyst at Schneider Electric, in a note.
- While confirmed cases of COVID-19…recently spiked according to reports out of China’s Hubei province, the increase is being attributed to a change in methodology for diagnosing the virus rather than a sudden increase in transmission.
- On Thursday, closing crude values have increased. WTI on NYME closed at $51.42/bbl. Prices have increased by 0.25/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 0.55/bbl in compare to last closing price and was assessed around $56.34/bbl.
PLANT NEWS
QAFAC shut down its Methanol plant
Qatar Fuel Additive Co (QAFAC) has shut down its Methanol plant due to its technical issues. The operations have been put on halt in the first week of January 2020. Company has not specified yet for how long the unit is likely to remain off-stream.
Unit is based at Messaieed in Qatar, the natural gas based Methanol plant has a production capacity of 1.1 mln mt/year.
Methanol plant was shut down by Kaveh Methanol
Methanol was shut down by Kaveh Methanol due to shortage in the supply of natural gas. Since natural gas is the feedstock supply for Methanol plant. The unit was shut down last week and is likely to last till winter season in Iran. The government of feedstock supply of natural gas has been curtailed as it has been diverted towards domestic sector.
$1 = Rs. 71.40
Import Custom Ex. Rate USD/ INR: 71.65
Export Custom Ex. Rate USD/ INR: 69.95
