Methanol Weekly Report 18 Jan 2019
Weekly Price Trend: 14-01-2019 to 18-01-2019
- The above graph focuses on the Methanol price trend for the current week. Prices remained highly vulnerable for this week. There has been decline in values for this week.
- By the end of the week prices were assessed around Rs 22.25/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol prices reduced on back of weak demand sentiments and sluggish requirement. In last few weeks there has been abundant supply in domestic market leading to heavy decline in domestic values.
- Prices in the domestic market increased and were assessed to the level of Rs.22.25/Kg for bulk quantity.
- CFR India prices were assessed around USD 240/MTS, slightly increased by USD 6.5/MT for this week. On other sideCFR China prices increased by USD 8/MT for this week and were assessed at the rate of USD 276/MT.
- Oil prices remained vulnerable throughout this week. With concerns over surging in crude production lacklustre in demand crude prices declined on Thursday. The scenario was completely different on Friday.
- On other side OPEC has also cut down its production significantly for this month. Even as OPEC and allied exporters cut production, however, U.S. output has surged close to 12 million bpd in the latest week, and some traders and investors are concerned that growth in global supply this year will outpace demand.
- OPEC cut oil output sharply in December before a new accord to limit supply took effect on Jan. 1, it said on Thursday, suggesting that producers have made a strong start to averting a glut in 2019 as a slowing economy curbs demand.
- Indian government has been very optimistic with usage of fuel as Methanol in daily transportation. India has the potential to expand the current ₹11,000 crore methanol economy to about ₹2 lakh crore in the years ahead through the promotion of cleaner fuel.
- Government said that 10 methanol powered public transport buses will be gifted to the Pune Municipal Corporation (PMC) to be run on the city roads as a pilot project.
- He pointed out that India spends ₹7 lakh crore annually to import crude oil and it is necessary to switch over to cost-effective, import substitution and pollution-free fuel alternatives.
PLANT NEWS
Two new Methanol units to be started by America
- Two new Methanol units are scheduled to start in 2019. They will be based one in America and the other Trinidad and Tobago. Mitsubishi is a major player in the Trinidad plant at La Brea, which is 470 miles from Jose, Venezuela, where the Japanese giant operates two Metor methanol plants.
- Aside from Venezuela’s current economic catastrophe in progress, another disadvantage to having plants in the South American country (according to a source close to the project) is that methanol shipped from there to the US is not duty-free.
- Methanol from Trinidad comes into the US duty-free while shipments from Venezuela are hit with a 5.5% import tax.
$1 = Rs. 71.12
Import Custom Ex. Rate USD/ INR: 72.10
Export Custom Ex. Rate USD/ INR: 70.40
