Methanol Weekly Report 5 June 2020

Weekly Price Trend: 01-06-2020 to 05-06-2020

• 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/Kg for this week. There has been mixed trend in domestic values.
• By the end of the week prices were assessed around Rs 16/Kg for Kandla and Mumbai ports.

INDIA & INTERNATIONAL

• This week domestic market prices of Methanol have remained vulnerable and were assessed around Rs.16/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.
• Major Methanol producers of the world have stalled their production or have put on halt to the new expansion capacity. Around 2.2m tonnes/year of methanol production capacity has been idled already due to the weak market environment, including Methanex’s Titan plant in Trinidad and Tobago, Chile IV plant, as well as the Methanol Holdings Trinidad Limited’s Point Lisas, Trinidad and Tobago plants. South Louisiana Methanol (SLM), in a letter to the Louisiana Department of Environmental Quality, requested an extension for permits of its methanol project in St James Parish, LA, US, saying construction was put on hold for an indefinite period. The situation is likely to last for few more months due to this pandemic across the world.
• There has been heavy fluctuation in the prices for petrochemical product. Trade operations have resumed last week but the manufacturing industries are yet to start their production. Majority of labours migrated to their natives leaving behind empty units and derailed production line.
• There has been continuous rise in fresh cases in India and highest in Maharashtra and Gujarat. People are scared and worried to move out. The economy has now reached its low levels and people have to start living with Covid 19.
• Oil prices relaxed slightly today as market are looking forward to see whether major oil producers are ready to extend record production cuts. But now this meeting has been delayed due to poor compliance by some producers.
• The meeting that will help shape the future of the oil market over the next few months is proving difficult, however, even though it would appear that Saudi Arabia and Russia have reached an agreement in principle to extend the current level of cuts through the end of July.
• On Thursday, closing crude values have increased. WTI on NYME closed at $37.41/bbl. Prices have increased by 0.12/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 0.20/bbl in compare to last closing price and was assessed around $39.99/bbl. 

$1 = Rs. 75.58

Import Custom Ex. Rate USD/ INR: 76.45

Export Custom Ex. Rate USD/ INR: 74.75