Methanol Weekly Report 23 Sep 2017

Weekly Price Trend: 18-09-2017 to 22-09-2017

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.27/Kg for Kandla and Rs 27/kg Mumbai ports.

Total import at various ports of India August, 2017

Above chart represents the total imported quantity of Methanol for the month of August, 2017.
Last month total imports were around 177782mt. As per chart at Kandla port imports were higher while at Cochin port import was 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 27/kg for Kandla and Rs 27/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 319-339/MTS. Prices have decreased in compares to previous week.
• This week in China market prices have plunged CFR China prices were assessed at the level of USD 335/mt.
• This week methanol prices have plunged sharply in compare to last week.
• China methanol prices in Jiangsu plunged on policy uncertainties.
• As per report, presently market is moving with uncertain velocity on account of this some market players have adopted observing stance which has resulted in plunge in demand and prices.
• In China, the start up of some plants has been delayed and now it is anticipated that soon the new plants is set to start in 2017.Which will enhance the demand for methanol. Moreover, this month the average operating rate of methanol plants in operation has declined.
• The impact from environmental protection is going off and the demand for methanol from downstream sectors plants will go up. Additionally, some buyers also preparing for methanol stocks for approaching National day holiday in early October.
• As per source information Methanol shipments will not be affected by logistics restrictions at ports in Jiangsu in October.
• As per the analysis it is anticipated that upcoming outlook for methanol will be positive as demand will boost and supply will be limited.
• Texas based Methanol unit has been restarted this week. Earlier this unit was shut down due to heavy rains and hurricane Harvey. The authorities from Celanese has confirmed this news and restarted its unit at Clear Lake city in Texas. Due to this shut down the prices for Methanol has been soaring in the US market. The other downstream products like Acetic Acid and VAM units too suffered a lot on the same site. This methanol unit has the production capacity of 1.3 million mt/year.
• This week oil prices have followed mixed trend. Oil prices were steady on Thursday ahead of a meeting of oil producers that could extend production limits aimed at clearing a glut that has depressed the market for more than three years. As per report, Ministers from the OPEC, Russia and other producers meet in Vienna on Friday and are due to consider extending output cuts that began in January.
• On Thursday, closing crude values have mixed.WTI on NYME closed at $50.55/bbl, prices have decreased by $0.14/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.14/bbl in compared to last trading and was assessed around $56.43/bbl. Presently many analysts anticipate that OPEC to extend the deal, possibly to the end of next year.

  $1 = Rs. 64.79
 Import Custom Ex. Rate USD/ INR: 65.40
 Export Custom Ex. Rate USD/ INR: 63.70