Methanol Weekly Report 26 April 2019

Weekly Price Trend: 22-04-2019 to 26-04-2019

• The above graph focuses on the Methanol price trend for the current week. Prices remained vulnerable throughout this week. Domestic prices were assessed at the level of Rs.28.5/Kg for bulk quantity by end of the week.
• By the end of the week prices were assessed around Rs 28.5/Kg for Kandla and Mumbai ports, prices reduced by Rs.1.25/Kg for bulk quantity.

Booking Scenario

INDIA&INTERNATIONAL 

• This week domestic market prices of Methanol remained vulnerable there was a constant variation in the values. Prices in the domestic market improved and were assessed at the level of Rs.28.5/Kg for this week.
• CFR India prices were assessed around USD 309/MTS, increased by USD 2/MT in values in compare to last week’s closing values. On other side CFR China prices also remained firm for this week at the level of USD 289-309/MT, with no change in values.
• In last two weeks there has been significant improvement in domestic values for Methanol. The sole reason behind this hike in shortage in the supply. The decline in supply is not due to shortage in production but because of unavailability of berth at Indian ports. Ports are already overloaded with other stocks and huge accumulation of vessels.
• The major supplier of Methanol is Iran and it has curtailed its supply due to some unexpected plant shutdowns. This short supply at Indian ports is likely to stay for two to three weeks as Iran has been reluctant to make any fresh deals.
• This week there has been continuous rise in oil prices in international market. Price rise has been in particularly due to end in the sanctions in waivers given by US against Iran to several other nations.
• India and China are the two major countries importing the most oil from Iran. Oil prices have rallied by more than two percent in this week in compare to closing of prices in the end of 2018. The grant provided to eight nations has now been pulled back by US.
• These potential disruptions to Iranian supplies add to an already tight market. The Organization of the Petroleum Exporting Countries (OPEC) has led supply cuts since the start of the year aimed at tightening global oil markets and to propping up crude prices.

PLANT NEWS

Methanol capacity to be expanded by Celanese

• Celanese soon make an significant expansion of its Methanol capacity at its Clear Lake acetyl intermediates manufacturing facility in Pasadena, Texas. The approval has been granted from the board of directors of Fairway Methanol  joint venture (JV) with Japan’s Mitsui & Co for a second phase expansion. The new expansion will increase the production to 1.7mtonnes/year. Earlier this unit was commissioned in 2015with a capacity of 1.3mtonnes/year. The existing methanol unit utilizes low-cost natural gas in the US Gulf Coast region as a feedstock.
• The JV operates as Fairway Methanol LLC, with both Celanese and Mitsui maintaining a 50/50 ownership. 

$1 = Rs. 70.01

Import Custom Ex. Rate USD/ INR: 70.40

Export Custom Ex. Rate USD/ INR: 68.70