Methanol Weekly Report 22 April 2017

Weekly Price Trend: 17-04-2017 to 21-04-2017

• The above graph focuses on the Methanol price trend for the current week. Prices have followed weak inclination for this week. By the end of the week prices were assessed around Rs.20.5/Kg for Kandla and Rs 20.25/kg Mumbai ports.

Total import at various ports of India March, 2017

Above chart represents the imported quantity of Methanol in the month of March, 2017. Total imported quantity previous moth was around 179978mt. Last month at Kandla port higher quantity have been imported, while at Mangalore port imports were lesser.

Booking Scenario

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have followed weak inclination and by the end of the week prices were evaluated at Rs 20.5/kg for Kandla and Rs 20.25/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 250-370/MTS. Prices have plunged USD 38/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 325/mt.

• CFR China prices were assessed in the range of USD 268-288/MT prices have decreased in compares to previous week.
• This week methanol market has remained weak with bearish sentiments.
• As per report, EU methanol net imports dip in Feb 17.
• Prices of domestic methanol product plunged notable in one month duration. In the month of March average methanol prices were assessed at Rs 29/kg although presently prices has ascertained in the range of Rs 20-21/kg. A sharp plunge in the prices was on account of good amount of material availability and bearish sentiments from downstream sectors.
• In China demand from downstream sectors remained subdued by environment-protecting requirement. Demand for methanol shrank with downstream plants consuming feedstock methanol from their stocks only.
• China based CNOOC has shut its methanol plant from 18th April which is having the production capacity of around 6,00,000 mt/yr. As per source, Singapore March methanol imports have increased 8.9% year on year.
• As per market analyst, in near term methanol market outlook will remain bearish demand will stay constrained and with the start of plant, supply is anticipated to go up. Demand for methanol in MTO production is expected to decrease further, said by market players.
• As per report, presently methanol market is moving with sluggish velocity market players have been uncertain for upcoming market outlook.
• This week oil prices have followed mixed trend. On Wednesday oil slumped after U.S. data showed a smaller-than-expected drop in overall crude stocks and a surprising build in gasoline inventories, which raised worries about excessively high global supply.
• As per report, the surprise builds in gasoline, along with an increase in U.S. production and imports from OPEC nations, pressured prices. With just weeks to go before OPEC and other producers have to sign off on a new deal to hold down production. OPEC technical staff this month is expected to make a recommendation on whether to extend the cuts, and OPEC's monitoring committee meets the day before OPEC's May 25 meeting.
• Market players have said that to prevent a further ballooning in supplies, some OPEC producers including Saudi Arabia and Kuwait are lobbying to extend the pledge to cut production beyond June.
• On Thursday, closing crude values have remained mixed.WTI on NYME closed at $50.27/bbl, prices have decreased by $0.17/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.06/bbl in compared to last trading and was assessed around $52.99/bbl.

 $1 = Rs. 64.61
 Import Custom Ex. Rate USD/ INR: 65.55
 Export Custom Ex. Rate USD/ INR: 63.85