Methanol Weekly Report 28 Dec 2018

Weekly Price Trend: 24-12-2018 to 28-12-2018

• The above graph focuses on the Methanol price trend for the current week. Prices remained highly vulnerable for this week. There has been continuous decline in domestic prices due to supply glut in international market.
• By the end of the week prices were assessed around Rs 19.5/Kg for Kandla and Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL 

• This week domestic market prices of Methanol prices reduced significantly and have reached to its lowest levels of below Rs.20 mark. There has been international pressure as well pulling the domestic prices to its lowest levels. By end of the week prices were assessed around Rs.19.5/Kg for Kandla and Mumbai port for bulk quantity.
• CFR India prices were assessed around USD 232/MTS, slightly increased by USD 2/MT for this week. On other sideCFR China prices remained stable with no change in values in this last week of 2018.
• Oversupply of the chemical coupled with lousy demand has demoralized the market sentiments for methanol market. Experts say they its really difficult to make any assumption for the pricing of methanol even for next week.
• Weak demand from downstream industry in China market has further plummeted the prices. The upcoming holiday season in China has also weakened the demand further as most of the units will either undergo maintenance or most of the units will remain absent due to long vacation. The restocking prices ahead the vacation has also completed last week. Thus there will be no demand in the days ahead the vacation. Further new units of Methanol are likely to start up in China had also affected the demand for the chemical.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $44.61/bbl. Prices have decreased by $1.61/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $2.31/bbl in compare to last closing price and was assessed around $52.16/bbl

PLANT NEWS

Methanol unit restarted by Yankuang Guohong Chemical

• China based Yankuang Guohong Chemical has restarted its Methanol unit. The unit was shut down last week due to some technical fault.
• Unit is based at Shandong province of China and has the production capacity of 5,00,000 tonne/year.

Niti Aayog of India focuses more on Methanol used as cooking fuel

• The think tank of Central government has proposed to make a transform in the way cooking is done in India. This in turn will put halt on major import bills and will also see for the pollution control. The Aayog has prepared a comprehensive plan advocating adoption of methanol as the preferred cooking fuel in households as well as commercially.  Methanol is a cleaner fuel and will also reduce the dependence on imported gas too. To increase the domestic production of methanol for cooking the units will be set up at Assam and Bengaluru. Larger stoves for commercial use will be imported from Sweden till technology is developed locally. In terms of heat value, a 14-kg LPG cylinder is equivalent to about 20 kg of methanol. But estimates show methanol is 30% cheaper and saving on an equivalent quantity of LPG is expected to be Rs 350.  

$1 = Rs. 69.94

Import Custom Ex. Rate USD/ INR: 71.45

Export Custom Ex. Rate USD/ INR: 69.75