Methanol Weekly Report 29 May 2020 01 Jun 20, 01:42 pm

Methanol Weekly Report 29 May 2020

Weekly Price Trend: 25-05-2020 to 29-05--2020

The above graph focuses on the Methanol price trend for the current week. Prices have remained vulnerable for most of the week. Domestic prices were assessed at the level of Rs.16.5/Kg for this week. There has been mixed trend in domestic values.
By the end of the week prices were assessed around Rs 16.5/Kg for Kandla and Mumbai ports.

INDIA&INTERNATIONAL

This week domestic market prices of Methanol have remained vulnerable and were assessed around Rs.16.5/kg for this week for bulk quantity.
Prices were not announced for this week for India. The regular assessment of prices will commence from next week onwards.
All the global trends are making difficult for the survival developing nations. Already brutally affected by COVID. The growing tension between India and China over border issues, worsening of China and US terms has been adding to difficult times ahead for the world.
Dow also wants more clarity on US-China trade relations before pursuing larger projects. European chemicals stocks and bourses rose healthily on Thursday on the back of hopes the lockdown easings will revive economic activity and liquidity provided by central banks will soften the recession.
The rally needs a breather. It has been four weeks of gains and the market needs to buy time for downstream prices to catch up. Thursday’s data from the Energy Information Administration showed that U.S.crude oil and distillate inventories rose sharply last week. Fuel demand remained slack even as various states lifted travel restrictions they had imposed to curb the coronavirus pandemic, analysts said.
On other side Saudi Arabia and some OPEC members are considering extending record production cuts of 9.7 million barrels per day beyond June, but have yet to win support from Russia.
On Thursday, closing crude values have increased. WTI on NYME closed at $33.71/bbl. Prices have increased by 0.90/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 0.55/bbl in compare to last closing price and was assessed around $35.29/bb.
In China market, there has been continuous rise in coastal methanol inventory the beginning of 2020. It has reached 1.05 million tons as of the week ending May 21 (including tank inventory in both East and South China ports), compared to 0.75 million tons in the same period of last year. As a result, tank storage space is reaching the maximum capacity. It is said that vessels at East China ports now have to wait for 15-20 days to discharge cargoes. In order to enhance the circulation of goods, several tank operators have raised the storage charges for methanol.
On demand side, operating rates of methanol’s downstream derivatives hover low. Profits of formaldehyde and DME are meager, while that of acetic acid maintains good. However, plant operations are affected by the measure to stem the coronavirus and requirement of environmental protection during the Two Sessions from May 21 to 28.
Demand is yet to recover, and methanol piece continued correction. Crude oil price rose in May, and methanol futures were bolstered, supporting methanol spot market. However, with the delivery of May contract for methanol futures completed and crude oil pulling back, methanol futures and spot market softened.
Canada based Methanex has posted its North American and Asian contract prices for the month of June 2020. Asian contract prices have been reduced by USD 10/MTS for this month. Prices posted for June 2020 were USD 215/MT while prices posted for North America is USD 289/MT.