Methanol Weekly Report 25 Feb 2017

Weekly Price Trend: 20-02-2017 to 24-02-2017

• 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.34/Kg for Kandla and Rs 33.5/kg Mumbai ports.

Total import at various ports of India January, 2017

Above chart represent the import quantity of Methanol for the month of January 2017. In January total imported quantity were around 129781mt.As per chart previous month at Kandla port higher quantity has been imported while at Cochin 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 34/kg for Kandla and Rs 33.5/kg for Mumbai ports.                                                                                                                                              
• CFR India prices were assessed in the range of USD 361-381/MTS. Prices have decreased by USD 4/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 392/mt.

• CFR China prices were assessed in the range of USD 364-384/MT prices have increased in compares to previous week.
• The leading technology developing company Honeywell has announced that Jiangsu Sailboat Petrochemical Company, Ltd. started its UOP Advanced Methanol-to-Olefins (MTO) unit during a 10-day test to confirm successful operation.
•  Once the unit will resume its complete operations than it will have the annual production capacity of 833,000MTPA, making it the largest single-train MTO unit in the world. Unit is based at Lianyungang city in China’s Jiangsu province.
• With the beginning of 2017, Chinese methanol market feels a supply pinch and perks up with price hovering on the high side.
• As per market report, there is more supply available in East China, while some methanol-to-olefins plants are either shut down or running at reduced rates on account of this demand of methanol have plunged and which has resulted in plunge in prices
• Recently this week some analyst shows concern over a downturn of methanol market in bearish sentiment.

• Methanol price stays on the high side, while higher cost fails to translate into price increase in downstream derivatives.
• As per the market analyst demand for MTO unit has been plunged as cost is too high and in near term methanol market is likely to move downward due to weak demand sentiments.
• Oil prices remained volatile through the week. Some market players have said that oil prices will remain stuck in a narrow range as OPEC continues to cut output and U.S. drillers increase production. That will cap the recovery for oil stocks.
• The U.S. exported a good amount of crude oil and filling the gap in world markets created by OPEC cutbacks. OPEC certainly has to be concerned with U.S. oil producers eating into their market share. As per market analyst in near term the pressure on prices is going to stay in place and ultimately break out of this range to the downside.
• On Thursday, closing crude values have increased.WTI on NYME closed at $54.45/bbl, prices have increased by $0.86/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.74/bbl in compared to last trading and was assessed around $56.58/bbl.

 $1 = Rs. 66.83
 Import Custom Ex. Rate USD/ INR: 67.85
 Export Custom Ex. Rate USD/ INR: 66.15