Methanol Weekly Report 27 May 2017

Weekly Price Trend: 22-05-2017 to 26-05-2017
 

• 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.19/Kg for Kandla and Rs 19/kg Mumbai ports.

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 19/kg for Kandla and Rs 19/kg for Mumbai ports.     
• CFR India prices were assessed in the range of USD 227-247/MTS. Prices have increased by USD 5/mt in compares to previous week.

• FOB Korea prices of methanol were evaluated around at the level of USD 278/mt.

• CFR China prices were assessed in the range of USD 255-275/MT prices have increased in compares to previous week.
• This week domestic prices of methanol have decreased on weaker demand sentiments from downstream sectors.
• Methanol plant has been restarted by Jiangsu Weitian last week. The plant is based at Jiangsu province of China and has the production capacity of 150 Kt/year. Earlier the unit was shut down on 4th may and remained off-stream for around 3 weeks.
• In China Methanol imports are likely to climb in Jun and Jul as domestic plants are resuming production.
• Presently the industry in China is still oversupplied without enough demand on account of this prices have plunged and near term outlook also will remain bearish.
• Methanol production facility further gets loan from West Virginia Economic Development Authority gave preliminary approval for a $10 million loan to US Methanol to purchase its machinery and equipment. The plant, known as Liberty One Methanol, is the first the California-based startup will develop. It is expected to create about 350 temporary construction jobs and 50 permanent jobs in the plant, according to US Methanol Chief Commercial Officer Brad Gunn.
• US Methanol has plans to develop more facilities in West Virginia but hasn’t yet officially decided on any locations.
• This week oil prices have followed volatile trend. On Thursday, Crude oil prices plunged more than 5 percent below $49 per barrel for its biggest daily drop in three weeks as OPEC members agreed to extend oil output cuts for nine months, crude oil traders pushed prices down by more than 4%.
• As per report, OPEC and some non-OPEC members agreed to extend oil supply cuts of 1.8 million barrels per day for a further nine months in a bid to stop waving prices. However, the move disappointed some who had hoped for longer or deeper cuts.
• As per market analyst, an initial six months of output reductions failed to shrink brimming crude stockpiles around the world. OPEC members need to curtail exports and take action to limit surging U.S. production to succeed this time.
• On Thursday, closing crude values have decreased.WTI on NYME closed at $48.90/bbl, prices have decreased by $2.46/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $2.50/bbl in compared to last trading and was assessed around $51.46/bbl.

  $1 = Rs. 64.44
 Import Custom Ex. Rate USD/ INR: 65.30
 Export Custom Ex. Rate USD/ INR: 63.60