Methanol Weekly Report 3 July 2020 04 Jul 20, 11:46 am

Methanol Weekly Report 3 July 2020

Weekly Price Trend: 29-06-2020 to 03-07-2020

The above graph focuses on the Methanol price trend for the current week. Prices remained unchanged for this week. There has been mixed trend in domestic values.
By the end of the week prices were assessed around Rs 17.75/Kg for Kandla and Mumbai ports.

BOOKING SCENARIO

INDIA & INTERNATIONAL

This week domestic market prices of Methanol have remained vulnerable and were assessed around Rs.17.75/kg for this week for bulk quantity.
Prices for India were assessed around USD 144/MT, with no change in prices for this week. CFR China prices were assessed around USD 160/MT for this week.
There has been oversupply of Methanol in European market. The demand has improved but oversupply has curtailed the rise in prices for methanol. The European methanol spot price mid-point softened by €0.50/tonne from the previous week.
There has been continuous surge in Corona cases in major cities of India. The financial city of India Mumbai has been hotspot for the pandemic. The state government over there has declared complete lockdown again for two weeks. Operations are likely to get setback due to this lockdown.
The face-off between India and China has been major concern for global petrochemical market. India this week has banned the apps and is focusing more on Make in India rather importing from China. The tensions has been escalating day by day where China has been conquering the lands in south Asia and creating tensions with neighboring countries.
Oil declines as there has been rise in corona cases which worries oil demand. Prices decline as the resurrection of the coronavirus globally and in the United States, the world's largest oil consumer, dimmed the prospects of fuel demand recovery.
Increases in the daily cases of the coronavirus, and globally as well has pressured prices. New U.S. COVID-19 cases rose by more than 50,000 on Thursday, setting a record for a third consecutive day.
On Thursday, closing crude values have increased. WTI on NYME closed at $40.65/bbl. Prices have increased by 0.83/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 1.11/bbl in compare to last closing price and was assessed around $43.14/bbl.
The market has become increasingly confident that easing restrictions on travel and business would boost demand for crude oil, but the pandemic's progress threatens to derail this recovery.
China’s petrochemical markets mainly tracked crude oil in June with several chemicals saw lower prices as a result of weaker demand, a trend likely to continue months ahead.
As of now, 19 out of the 33 petrochemical products witnessed lower prices than at the beginning of the month while for the rest, almost a half saw limited price gains.
These include methanol, purified terephthalic acid (PTA), polypropylene (PP), polyethylene (PE), monoethylene glycol (MEG), mixed xylene, benzene, toluene, acetic acid, styrene, phenol, acrylonitrile, acetone, n-butanol, 2-ethylhexanol (2-EH), acrylic esters and propylene oxide (PO).

METHANEX announced its Asian contract prices for the month of July 2020

Canada based Methanex has posted its North American and Asian contract prices for the month of July 2020. Asian contract prices remained unchanged for the month of July. Prices posted for July 2020 were USD 215/MT while prices posted for North America is USD 276/MT.

MTO plant resumes production by Pucheng Clean Energy

Pucheng Clean Energy Chemical Company has restarted its Methanol-to-Olefins unit. Earlier unit was shutdown for maintenance in the first week of May. The turnaround for these units was completed last week.
Units are based at Weinan, Shaanxi in china and have the production capacity of Ethylene around 300,000 mt/year and propylene capacity of 400,000 mt/year.

MTO plant resumes production by Pucheng Clean Energy

Pucheng Clean Energy Chemical Company has restarted its Methanol-to-Olefins unit. Earlier unit was shutdown for maintenance in the first week of May. The turnaround for these units was completed last week.
Units are based at Weinan, Shaanxi in china and have the production capacity of Ethylene around 300,000 mt/year and propylene capacity of 400,000 mt/year.

New Methanol unit started by Ningxia Baofeng

Johnson Matthey (JM) made an important announcement that Ningxia Baofeng Energy Group has "successfully" commissioned a new methanol plant at Ningxia Baofeng's 600,000-t/y coal-to-olefins complex in Ningxia Province, China.
The unit with a capacity of 6,600 tonnes/day is based on technology of JM, and is based on gas as feedstock. It combines advanced JM catalysts to produce stabilized methanol, which is used to produce olefins in a downstream facility.
"This project has incorporated processing technologies from the most advanced international and domestic coal-to-chemical units," said Liu Yuanguan, president of Baofeng Energy.
"The unit is the largest methanol plant for a single train with comprehensive advantages of high synthesis and energy efficiency and low OPEX and emissions, benefiting both our society and providing long-term value."

$1 = Rs. 74.63

Import Custom Ex. Rate USD/ INR: 76.40

Export Custom Ex. Rate USD/ INR: 74.70