Methanol Weekly Report 16 june 2018

Weekly Price Trend: 11-06-2018 to 15-06-2018

The above graph focuses on the Methanol price trend for the current week. Prices have followed volatile trend for this week. By the end of the week prices were assessed around Rs 31.75/Kg for Kandla and Rs 31.75/kg Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have followed little volatile and by the end of the week prices were evaluated at Rs 31.75/kg for Kandla and Rs 31.75/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 380/MTS. Prices have increased by USD8/mt in compares to previous week.
• CFR China prices of methanol were evaluated at USD 400/mt.
• FOB Korea prices of Methanol were evaluated USD 420/mt.
• CFR South East Asia prices of Methanol USD 426/mt.
• As per report, methanol cargo arrivals to east China port on June 21-22, 2018.
• There has been consistent soaring up in the Methanol prices in last few weeks. The supply has become short due to US policy on Iraq and along with fresh turnarounds by European manufacturers. Russia one of the major supplier has put an halt on supply of dangerous products via train. This includes Methanol as well. Acetic acid exports from Russia have also reduced in this period. The other major manufacturer of Methanol Equinor based in Norway will carry out maintenance in June at its sit based at Tjeldbergodden. BioMCN based at Netherlands will also shut down its Methanol plant soon. All these conditions had an adverse impact on the supply of Methanol in international market.
• Presently methanol market is moving with uncertain velocity on account of this no major deals have been taken place and some market players have adopted wait and watch approach.
• BMC’s methanol plant had unplanned outage on 12-14 June.
• The leading petrochemical trader Helm along with Proman and Southern Chemical Corporation (SCC), has launched a new methanol joint venture named Helm Proman Methanol. The company Helm will be holding a stake of 57% in the company and its headquarters will be based at Wollerau in Switzerland.
• In China demand for methanol has been increasing rapidly from coal-, methanol-to-olefins projects. Methanol was once oversupplied in China, but now the demand-supply situation is balanced as several new methanol plants both domestic and abroad are postponed, leading to rise in methanol price.
• In China new methanol projects to come online are frequently combined with MTO facility, so domestic methanol supply increase could remain restricted.
• This week crude oil prices have followed mixed trend. On Thursday oil prices were lower, facing pressure from evidence of rising U.S. output and uncertainty over the outlook for supply.
• On Thursday, closing crude values have remained mixed. WTI on NYME closed at $66.89/bbl; prices have increased by $0.25/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.86/bbl in compare to last closing price and was assessed around $76.74/bbl.

 $1 = Rs. 68.01
 Import Custom Ex. Rate USD/ INR: 67.85
 Export Custom Ex. Rate USD/ INR: 66.15