Methanol Weekly Report 24 January 2020
Weekly Price Trend: 20-01-2020 to 24-01--2020
- The above graph focuses on the Methanol price trend for the current week. Prices remained soft-to-firm throughout this week. Domestic prices were assessed at the level of Rs.21.5/Kg for bulk quantity although closed on lower note in compare to last week’s closing values.
- By the end of the week prices were assessed around Rs 21.5/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol have remained soft-to-stable throughout this week. There has been slight improvement in the demand sentiments. Prices in the domestic market were assessed at the level of Rs.21.5/Kg for bulk quantity.
- CFR India prices were assessed around USD 233/MTS, small decline of USD 1/MTS for this week.
- China market remained closed on back of Lunar vacation.
- The negative reports related to spreading of life threatening disease in China have affected the commute of people across the country. Earlier people were all set to start their Lunar vacation aiming for different tourist destinations. Now with epidemic spread and locking down of major cities, people are restricted to stay at their home and avoid any public gathering
- Oil prices on Friday, following a drawdown in US crude stocks, but were set to fall heavily for the week amid worries that a new coronavirus in China that has killed 25 so far may spread, curbing travel, fuel demand and economic prospects.
- Brent crude futures were up 31 cents, or 0.5 per cent, at $62.35 a barrel by 0741 GMT after falling 1.9 per cent the previous session. For the week, Brent is down about 4 per cent.
- The virus has infected more than 800 so far in China, with 25 dead as of Thursday, according to China's National Health Commission. The World Health Organisation has declared the situation an emergency, but stopped short of declaring the epidemic of international concern.
- Most of the cases are in the central Chinese city of Wuhan, where the virus is believed to have originated late last year, though cases have now been found in at least seven other countries. Oil prices could remain on a slippery slope as traders remain incredibly twitchy about the effects the coronavirus outbreak could have on Chinese GDP and air travel more broadly.
PLANT NEWS
QAFAC shut down its Methanol plant
Qatar Fuel Additive Co (QAFAC) has shut down its Methanol plant due to its technical issues. The operations have been put on halt in the first week of January 2020. Company has not specified yet for how long the unit is likely to remain off-stream.
Unit is based at Messaieed in Qatar, the natural gas based Methanol plant has a production capacity of 1.1 mln mt/year.
Methanol plant was shut down by Kaveh Methanol
Methanol was shut down by Kaveh Methanol due to shortage in the supply of natural gas. Since natural gas is the feedstock supply for Methanol plant. The unit was shut down last week and is likely to last till winter season in Iran. The government of feedstock supply of natural gas has been curtailed as it has been diverted towards domestic sector.
$1 = Rs. 71.32
Import Custom Ex. Rate USD/ INR: 71.65
Export Custom Ex. Rate USD/ INR: 69.95
