Methanol Weekly Report 27 September 2019

Weekly Price Trend: 23-09-2019 to 27-09-2019

• 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.18.75/Kg for bulk quantity by end of the week.
• By the end of the week prices were assessed around Rs 18.5/Kg for Kandla and Mumbai ports.

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 reduced slightly for this week and were assessed at the level of Rs.18.75/Kg for bulk quantity.
• CFR India prices were assessed around USD 225/MTS, increased by USD 13/MTS for this week.
• CFR China prices were assessed around USD 217-237/MT, with no change in values in compare to last week’s closing values for this week.
• Benzene the major source for aromatic products has also improved for this week. FOB Korea values for Benzene were assessed around USD 720/MT, increased by USD 20/MT for this week, while CFR China prices also improved and were assessed at the level of USD 735/MT for this week.
• China will be celebrating its Golden week festival next week. So prior to this most of Chinese markets are in mood to wind up their activities and to make fresh deals only after mini vacation.
• The major manufacturers will be opting for either shutdown or , cutbacks and restricted highway transportation. Overall there will be completed silence from China market and very limited enquiries will be heard for next week.
• Benzene the major source for aromatic products also remained unchanged for this week. FOB Korea values for Benzene were assessed around USD 720/MT for this week, while CFR China prices were assessed at the level of USD 730/MT for this week.
• Oil prices fell on Friday, erasing more of the gains realized after the Sept. 14 attacks on Saudi Arabian oil facilities, as the rapid return of production capacity from the world’s top exporter squashed risk premiums.
• For most of the week the market has been trading lower as oil bulls have been discouraged by the quicker-than-expected return of Saudi oil output.
• Saudi Arabia had brought its production capacity back to 11.3 million barrels per day (bpd) less than two weeks after the attacks on it oil facilities, sources briefed on the matter told Reuters this week.
• The attacks, which knocked out 5.7 million bpd of production, initially sent oil prices up 20% although they dropped soon after as the kingdom pledged to bring back output by the end of September. 

MTO unit restarted by Shenhua Coal Co

• Shenhua Coal to Liquid and Chemical Co has restarted its Methanol-to-Olefins unit after brief maintenance. Earlier the unit was shutdown in the month of July for an annual maintenance. The unit has restarted its production in last week. Unit is based at Yulin in Shaanxi in China and has the production capacity of ethylene around 300,000 mt/year and propylene capacity of 300,000 mt/year.

MTO unit restarted by Shandong Yangmei Hengtong Chemical

• Shandong Yangmei Hengtong Chemical has restarted its Methanol-to-Olefins unit after brief maintenance period. Earlier the unit was shutdown in the month of July for an annual maintenance schedule. Unit has resumed its production in last month.
• Unit is based at Shandong province of China and has the production capacity of ethylene production capacity of 120,000 mt/year and propylene capacity of 180,000 mt/year.

$1 = Rs. 70.61

Import Custom Ex. Rate USD/ INR: 72.20

Export Custom Ex. Rate USD/ INR: 70.50