Methanol Weekly Report 21 Dec 2018

Weekly Price Trend: 17-12-2018 to 21-12-2018

• The above graph focuses on the Methanol price trend for the current week. Prices remained highly vulnerable for this week. There has been continuous decline in domestic prices due to supply glut in international market.
• By the end of the week prices were assessed around Rs 20.75/Kg for Kandla and Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol prices increased significantly on back of oversupply of chemical in the international market. By end of the week prices were assessed around Rs.20.75/Kg for Kandla and Mumbai port for bulk quantity.
• CFR India prices were assessed around USD 230/MTS, reduced by USD 8/MT for this week. On other sideCFR China prices were assessed around USD 265/MT reduced by USD 10/MT for this week.
• Weak demand from downstream industry in China market has further plummeted the prices. The upcoming holiday season in China has also weakened the demand further as most of the units will either undergo maintenance or most of the units will remain absent due to long vacation. The restocking prices ahead the vacation has also completed last week. Thus there will be no demand in the days ahead the vacation. Further new units of Methanol are likely to start up in China had also affected the demand for the chemical.
• Crude market has been operating at lower levels since past few weeks. The prices tumbled by around 4.8% and has reduced to the levels of USD 45.88/bbl. This has reached to its lowest levels in last seventeen months. The oversupply has been the prime reason for this downfall.
• Demand for oil has reduced this year on contrary the market has been flooded with oversupply from world’s top three producers- the USA, Russia and Saudi Arabia.
• Last month earlier OPEC and other 10 producers agreed to cut down their production to remove 1.2 mln barrels per day from the market. But this step has least impact on the market. This cut down in production will last only till January 2019, further no decision has been taken yet.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $45.88/bbl. Prices have decreased by $2.29/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $2.89/bbl in compare to last closing price and was assessed around $54.35/bbl.
• The upcoming holiday season in China has weakened the demand further as most of theunits opts for shutdown during this period. 

PLANT NEWS

• Methanol unit restarted by Yankuang Guohong Chemical
• China based Yankuang Guohong Chemical has restated its Methanol unit. The unit was shut down last week due to some technical fault. The unit remain off-stream for around one week and has resumed its production in starting of this week.
• Unit is based at Shandong province of China and has the production capacity of 5,00,000 tonne/year.
• Europe’s largest Methanol plant shut down in Norway
• An explosion has pulled down all the operation at Europe’s largest Methanol plant based in Norway. Fire was reported at Norway’s Tjeldbergodden industrial facility on Tuesday. Immediate shutdown and evacuation of staff was ordered. The reason for this fire was an explosion in one of the facility’s high voltage rooms. The good thing was that no injuries were reported 

$1 = Rs. 70.14

Import Custom Ex. Rate USD/ INR: 71.75

Export Custom Ex. Rate USD/ INR: 70.05