Methanol Weekly Report 2 June 2018

Weekly Price Trend: 28-05-2018 to 01-06-2018

The above graph focuses on the Methanol price trend for the current week. Prices have followed firm trend for this week. By the end of the week prices were assessed around Rs 30.75/Kg for Kandla and Rs 30.75/kg Mumbai ports.

Booking Scenario

 INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have followed firm trend and by the end of the week prices were evaluated at Rs 30.75/kg for Kandla and Rs 30.75/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 382/MTS. Prices have decreased by USD85/mt in compares to previous week.
• CFR China prices of methanol were evaluated at USD 410/mt.
• FOB Korea prices of Methanol were evaluated USD 425/mt.
• Presently methanol market is moving with soft velocity no major deals and discussion has been heard.
• China methanol in Shandong market plunged on bearish demand sentiment.
• As per report, China’s Tangshan Zhongrun shuts its No 2 methanol plant.
• Many China based MTO units has been shut down either for annual maintenance or due to some technical issue in opertioans. Major MTO producers believe that the current prices for Methanol are too high. It does not make any sense to fill our inventories when most of out units are shut down for maintenance. On contrary the inventories are being now emptied and will refill once the prices are lowered. The availability of Methanol will improve in international market in the month of June once the major units based in Iran and Middle East will restart their production.
• Canada based Methanex has posted its North American and Asian contract prices for the month of June 2018. Prices posted for the region of North America are USD 496/MT. Prices remained unchanged for this month. On other side prices for the Asian Pacific region has been increased by USD 30/MT. The new ACP prices posted are USd 490/MT. These prices are valied till 30th June 2018.
• China based MTO unit of Ningbo Fund will start its MTO unit in the first week of June. Earlier the unit was shut down in the first week of May for annual maintenance.Unit is based at Shandong province of China and has the manufacturing capacity of 3,00,000 mt/year.
• China based Nanjing Chengzhi has shut down their MTO unit for maintenance. The unit has been shutdown as per annual maintenance schedule. Unit is based at Nanjing province of China and has the manufacturing capacity of 3,00,000 tonnes /year.
• China based Xingping New Energy has shut down their MTO unit for maitnenace. This was an unplanned shutdown. Unit will remain off-stream for around one month. Unit is based at Zhejiand province of China and has the manufacturing capacity of 6,00,000 tonnes /year.
• This week oil prices have remained mixed. On Thursday U.S. crude prices sank after a brief rally in the previous session, but as per analysis the recent slump in oil prices won't last much longer.
• On Thursday, closing crude values have remained mixed. WTI on NYME closed at $67.04/bbl; prices have decreased by $1.17/bbl in compared to last closing prices. While Brent on InterContinental Exchange increased by $0.09/bbl in compared to last trading and was assessed around $77.59/bbl.

 $1 = Rs. 67.05
 Import Custom Ex. Rate USD/ INR: 68.65
 Export Custom Ex. Rate USD/ INR: 66.95