Methanol Weekly Report 16 August 2019
Weekly Price Trend: 12-08-2019 to 16-08-2019
- The above graph focuses on the Methanol price trend for the current week. Prices remained vulnerable throughout this week. Domestic prices were assessed at the level of Rs.19/Kg for bulk quantity by end of the week.
- By the end of the week prices were assessed around Rs 19/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol remained vulnerable there was a constant variation in the values. Prices in the domestic market reduced significantly for this week and were assessed at the level of Rs.19/Kg for bulk quantity.
- CFR India prices were assessed around USD 215/MTS, slightly improved by USD 2/MT for this week. With ongoing monsoon season at its peak there has been significant decline in demand for Methanol. There has been slowdown in demand from domestic market due to monsoon across the nation.
- CFR China prices were assessed around USD 226-246/MT, with no change in values in compare to last week’s closing values for this week.
- There has been major slump in Methanol prices in China market. The crucial factors have been demand and supply fundamentals. With higher cost of production and low supply the manufacturers are in steady state.
- The ongoing tensions between India and neighboring state have been a matter of concern. The neighboring state has cut down its all ties with India. Although this will not have major impact on India economy.
- India’s nine-month long demand slump in automobile industry - July sales dipping to its lowest level in 20 years - has affected the auto components and ancillary industries including petrochemicals triggering job cuts and production slowdown. This slowdown in the auto industry is also being reflected in the ancillary industries, which includes the chemicals and plastics segments.
- Leading Indian paints manufacturers Asian Paints and Berger Paints have noted a downward pressure on their automotive paints segment due to the slowdown.
- Paint manufacturers use crude oil derivatives such as titanium dioxide, ethylene glycol and plasticizers as raw materials.
- Chemicals, technical textiles and engineering plastics manufacturer SRF Ltd has seen a 11% decline in sales in its technical textiles segment in the first quarter of 2019-20 and expects the subdued demand from the automotive industry to continue in the near term, a company source said.
- The slowdown in the auto industry has also affected the demand for phenol-based derivatives, said Deepak Mehta, chief managing director of chemicals manufacturer Deepak Nitrite while reviewing the company’s first quarter results.
PLANT NEWS
Shandong Rongxin to resume its Methanol production
- China based Shandong Rongxin Coal Chemical Company to restart its Methanol production plant. Earlier the unit was shut down for annual maintenance.
- Unit is based at Shandong in China and has the production capacity of Methanol around 2,50,000 tonnes/year.
MTO unit shutdown by Jiangsu Sailboat Petrochemical
- Jiangsu Sailboat Petrochemical has shutdown its Methanol-to-Olefins unit for annual maintenance in the last week of July due to some technical issues. According to sources the unit is likely to resume its production in the mid of August 2019.
- Unit is based at Lianyugang in Jiangsu province of China and has the production capacity of Ethylene around 3,60,000 mt/year and Propylene capacity of 4,70,000 mt/year.
MTO unit shutdown by Shenhua Coal to Liquid and Chemical Co
- Shenhua Coal to Liquid and Chemical Co has shutdown it’s Methanol-to-Olefins in the last week of July 2019. The unit is likely to remain off-stream for one more week and may resume its production in the next week.
- Unit is based at Yulin in Shaanxi in China and has the production capacity of ethylene capacity of 300,000 mt/year and propylene capacity of 300,000 mt/year.
$1 = Rs. 71.55
Import Custom Ex. Rate USD/ INR: 71.85
Export Custom Ex. Rate USD/ INR: 70.15
