Methanol Weekly Report 18 June 2018

Weekly Price Trend: 13-08-2018 to 17-08-2018

The above graph focuses on the Methanol price trend for the current week. Prices have followed up 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 up trend 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 375/MTS. Prices have remained firm in compares to previous week.
• CFR China prices were evaluated at USD 394/MT. Prices have remained firm in compare to last week.
• China imposed a retaliatory tariff on methanol imports from the US that will be important topic for discussion in the swelling trade war between the two countries. The question is how producers will decide to pay or not the proposed 25% tariff waiting for a shipload of US methanol when it docks in Nantong or other Chinese port. As per analyst, if the tariff goes through in China then buyers will have to pay more for methanol and methanol prices in China will got more expensive.
• As per report, to avoid the China tariff American methanol industry have to change trade flows from the US to other countries such as Trinidad, New Zealand and the Middle East, where North American producers have plants.
• Currently, China’s latest round of tariffs range from 5-25% on 5,207 US products including hundreds of chemicals attracting the highest duty.The US-China trade represents a huge ace-in-the-hole for the entire US petrochemical industry and not just methanol.
• For US methanol exports, China is the third most popular destination, accounting for about 5% of all shipments abroad in the first six months this year.
• This week crude oil prices have followed volatile trend. On Friday Crude prices edged higher, but were heading for yet another weekly decline on worries that oversupply would weigh on the U.S. market and that trade disputes and slowing global economic growth would slow demand for oil.
• On Friday, closing crude values have increased. WTI on NYME closed at $65.91/bbl. Prices have increased by $0.45/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.40/bbl in compare to last closing price and was assessed around $71.43/bbl.

 $1 = Rs. 70.15
 Import Custom Ex. Rate USD/ INR: 71.10
 Export Custom Ex. Rate USD/ INR: 69.40