Methanol Weekly Report 20 Jan 2018

Weekly Price Trend: 15-01-2018 to 19-01-2018

The above graph focuses on the Methanol price trend for the current week. Prices have followed soft trend for this week. By the end of the week prices were assessed around Rs 30/Kg for Kandla and Rs 30/kg Mumbai ports.

Total import at various ports of India December, 2017

Above graph represents the imported quantity of Methanol for the month of December, 2017. Last month total imported quantity was around 195684MT.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have followed soft trend and by the end of the week prices were evaluated at Rs 30/kg for Kandla and Rs 30/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 386-406/MTS. Prices have decreased sharply by USD 26/mt in compares to previous week.
• This week methanol prices have plunged on bearish demand sentiments from end users.
• CFR China prices of methanol were evaluated at USD 395/mt.
• FOB Korea prices of Methaniol were evaluated USD 430/mt.
• This week methanol prices have plunged sharply on weaker demand sentiments from end users.
• Methanol plunged on account of weather-related logistical challenges in China.
• As per report, China domestic prices will remain down in near term due to expectations of weather-linked shortages to improve by the end of January and of weak methanol downstream demand during the Lunar New Year holidays.
• China’s Huishan Tongtai restarts its methanol plant.
• The central government of India has taken an important decision of using Methanol as fuel. This will turn help to reduce pollution. With more demand for methanol the government will have to focus on continuous supply of chemical in the year 2018.
• To cater ongoing demand the production need to be increased. total amount of 4 million mt/yr of fresh capacity is expected to be added, which means a steady growth rate of 5% for 2018. The domestic supply is likely to increase as more plants are in line for production in year 2018.
• To summarize the methanol market, there has been increase in demand and supply. If this balance is maintained well then market will remain in equilibrium.
• Oil prices have followed volatile trend this week. On Thursday Oil rebounded after slipping below $69 a barrel, supported by a record drawdown of U.S. crude stockpiles at the Cushing, Oklahoma delivery hub, despite concerns that OPEC-led output cuts will increase supply from the United States.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $63.95/bbl; prices have decreased by $0.02/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.07/bbl in compared to last trading and was assessed around $69.31/bbl.
• As per report, the upside is now limited for oil prices. U.S. oil producers will ramp up production in the coming months. Some traders said that prices were unlikely to fall far due to the OPEC-led curbs and the risk of further disruptions.

 $1 = Rs. 63.85
 Import Custom Ex. Rate USD/ INR: 64.80
 Export Custom Ex. Rate USD/ INR: 63.10