Methanol Weekly Report 15 Sep 2018

Weekly Price Trend: 10-09-2018 to 14-09-2018

• The above graph focuses on the Methanol price trend for the current week. Prices stable to firm for this week.
• By the end of the week prices were assessed around Rs 31/Kg for Kandla and Rs 31/kg Mumbai ports.
• There has been increase in the values on back of rising crude values coupled with depreciation currency.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol prices remained stable to firm and were evaluated at Rs 31/kg for Kandla and Mumbai ports.
• CFR India prices were assessed around USD 369/MTS. CFR India prices remained unchanged for this week. CFR China prices were again roll-over for this week at USD 399/MT. This week methanol prices have remained volatile on account of uncertain market condition.
• There has been significant hike in domestic prices for Methanol in India. The sole reason for this increment is the depreciation of Indian currency against dollar. Everyday its creating new highs for the Indian currency against dollar.
• Experts do believe that this depreciation will see a pull back as the central government is trying hard to curtail the depreciation of rupee against dollar. So traders are not pitting their interest in the next booking but may look for fresh booking in next week where China prices has also curtailed.
• Domestic manufacturer of Methanol GNFC has also changed their values throughout this week. Prices posted yesterday were around Rs. 29.70/Kg.
• Methanol prices have increased by many folds in domestic market of China nations. The hike has been major in the month of August. To hold the reason for this hike is the ongoing depreciation of Yuan against dollar. Like Yuan the Indian currency has also depreciated to its lowest levels. This depreciation in turn has pulled the prices to highest levels in last few weeks.
• The ongoing trade spat between China and US has also affected the prices in international market.
• Methanol season is at its peak in the month of September in China but traders remain very vigilant as they don’t want to book any further losses,
• Again the demand from downstream MTO sector has been highest in the month of August. With higher rates of trading the demand from downstream sector has also turned slow. Manufacturers does not intent to make losses by purchasing feedstock Methanol at high levels as demand for downstream products has been capped sue to environmental regulations.
• MTO units have also pulled themselves from Methanol market as production has started in their integrated units to make an efficient supply. The units which cannot have integrated supply gas curtailed their production
• Buyers are making very cautious move in this confused market and are avoiding any crack deals which could make losses.
• Major plants based in China have started their production again. To name a few Jinmei Huayu with production capacity of 600Kt/year will soon go online with production. The other units like Jinmei Tianxi with production capacity of 300 Kt/year have restarted last week. The other units like Xinneng Phoenix, Luxi Chemical and ENN Xinneng with respective production capacities of 920 Kt/year, 800 Kt/year and 600 Kt/year have already started by last weekend.
• GNFC domestic manufacturer of Methanol has reduced its prices in domestic market by 20 paisa. Prices published for today were Rs.29.60/Kg.

PLANT NEWS
Iran’s new Marjan Petrochemical Company is ramping up operations at its new Methanol unit. The unit has the production capacity of 1.6 mln mt/year. Unit will be based at Aasaluyeh in Iran.  The unit currently operates at around 50-60 % of its capacity. India is one of the major purchasers of Methanol from Marjan Petrochemical. But at present it has also curtailed its imports as Indian currency has depreciated to its lowest levels against dollar.

 $1 = Rs. 71.84
 Import Custom Ex. Rate USD/ INR: 72.55
 Export Custom Ex. Rate USD/ INR: 70.85