Methanol Weekly Report 2 August 2019
Weekly Price Trend: 29-07-2019 to 02-08-2019
- 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.20.5/Kg for bulk quantity by end of the week.
- By the end of the week prices were assessed around Rs 20.5/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.20.5/Kg for bulk quantity.
- CFR India prices were assessed around USD 223/MTS, with no change in values 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 231-252/MT, remained unchanged 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.
- Domestic manufacturers in China are reluctant to reduce price further, but the loss is not unacceptable and not large enough to force plants to shut down. On one side the cost has been affecting market but on other side product inventory is still high, adverse to the market.
- Many MTO units are likely to start their production. Jiutai Energy started their production this week while Shenhua Yulin is expected to restart its 600kt/yr MTO plant in the first half of Aug after a 15-day maintenance. Sailboat plans to shut is 833kt/yr MTO plant on Jul 31 for 15 days, Yangmei Hengtong also has maintenance schedule in near term, Yan’an Energy and Chemical’s 600kt/yr MTO plant is expected to start maintenance in the end of Aug, Shenhua Xinjiang’s 600kt/yr plant is anticipated to shut in end-Aug for maintenance, and also Shenhua Baotou’s 600kt/yr MTO plant may start maintenance in mid-Sep. The combined capacity of MTO plants with upcoming shutdown schedules is much larger than of restarted ones.
- In terms of upcoming new MTO plant, there’re three which could come online in Aug, i.e. Ningxia Baofeng’s second 600kt/yr plant, Luxi Chemical’s 300kt/yr plant and Zhong’an United Coal Chemical’s 700kt/yr plant. However, the startups could get postponed, and the expectation of supports to methanol market may not materialize until Sep.
PLANT NEWS
Methanol plant to be shut down by SMC
- Salalah Methanol Co is planning to shut down its Methanol plant for maintenance turnaround. The unit is likely to go off-stream on 23rd August and will remain off-stream for around 3-4 weeks. Unit is based at Salalah in Oman and has the production capacity of 1.3 mln mt/year.
Jiutai Energy has restarted its MTO unit
- Jiutai Energy has restarted its MTO unit yesterday. The unit is based at China and has the production capacity of 600 Kt/year.
METHANEX announced its Asian contract prices for the month of August 2019
- Canada based Methanex has posted its North American and Asian contract prices for the month of August 2019. Asian contract prices has been reduced and were posted and were posted at USD 295/MT. Prices has been reduced by USD 40/MT for this week.
- Prices posted for North America is USD 342/MT. Prices posted for the Europe has also reduced by Euro 44/MT and were posted at Euro 315/MT.
$1 = Rs. 69.59
Import Custom Ex. Rate USD/ INR: 70.00
Export Custom Ex. Rate USD/ INR: 68.30
