Methanol Weekly Report 19 June 2020
Weekly Price Trend: 15-06-2020 to 19-06-2020
- The above graph focuses on the Methanol price trend for the current week. Prices have reduced for this week.. Domestic prices were assessed at the level of Rs.16.75/Kg for this week. There has been mixed trend in domestic values.
- By the end of the week prices were assessed around Rs 16.75/Kg for Kandla and Mumbai ports
INDIA & INTERNATIONAL
- This week domestic market prices of Methanol have remained vulnerable and were assessed around Rs.16.75/kg for this week for bulk quantity.
- Prices were not announced for this week for India. The regular assessment of prices will commence from next week onwards.
- There has been oversupply of Methanol in European market. The demand has improved but oversupply has curtailed the rise in prices for methanol. The European methanol spot price mid-point softened by €0.50/tonne from the previous week.
- Following price drops in the US and Asia this week, Europe is the highest-priced region for methanol spot for the first time since July 2019
- There has been big slump in crude prices for this week. Oil prices crashed by 7 percent on Thursday, after the EIA reported on Wednesday.
- On Wednesday, closing crude values have decreased. WTI on NYME closed at $37.96/bbl. Prices have decreased by 0.42/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is decreased by 0.25/bbl in compare to last closing price and was assessed around $40.71/bbl.
- Fears of a second wave of coronavirus pandemic and escalating global geopolitical tensions continue to support gold’s haven demand. Meanwhile, hopes of a quick economic recovery and a steady dollar are likely to limit major upsides.
- The face-off between India and China has been the talk of discussion throughout this week.
- The tight situation on the borders has affected the peace among two nations and the situation is likely to last for a while.
- China is one of the biggest exporters of petrochemical to India. If tensions continued then there will be major impact on petrochemical imports from China.
Methanol plant shutdown by Qinghai Zhonghao
- China based company Qinghai Zhonghao Natural Gas Chemical Company has shut down its Methanol unit. The reason behind this abrupt shutdown is technical fault in the operations.
- Unit is based at Qinghai province of China and has the production capacity of 6,00,000 tonnes/year.
$1 = Rs. 76.10
Import Custom Ex. Rate USD/ INR: 77.05
Export Custom Ex. Rate USD/ INR: 75.35
