Methanol Weekly Report 7 August 2020

Weekly Price Trend: 03-08-2020 to 07-08-2020

• The above graph focuses on the Methanol price trend for the current week. Prices remained stable throughout this week. Although market has been operating at slower rate in Methanol segment.
• By the end of the week by R.18.25/Kg for this week. There has been no change in values for this week.

BOOKING SCENARIO

INDIA & INTERNATIONAL 

• This week domestic market prices of Methanol have remained stable with no major change in domestic prices.
• Prices for India were assessed around USD 150/MT, with no change in values for this week. CFR China prices were assessed around USD 166/MT for this week.
• On other side CFR SEA prices were assessed in the range of USD 228-239/MT.
• International Methanol Company (IMC) has shutdown its Methanol unit abruptly. The duration for this shutdown has not been specified yet. Plant is located at Jubail, South Arabia and has the production capacity of 967 million MT/year.
• There has been heavy rains in the western part of India specifically Mumbai which has halted all the port as well as other operations.
• Covid cases are highest in India in Mumbai which has made led to strong melting in petroleum industry.
• With starting of festive season there will be more holidays in the industry. However demand will not gain in spite of festive season. Manufacturers are facing really very difficult time due to this pandemic.
• Oil prices slipped further leading to the decline in fuel demand growth amid a resurgence of coronavirus cases and as talks have stalled in the United States on a new stimulus deal.
• The resurgence of coronavirus infections remains the main uncertainty in the oil market, as that will determine how fast fuel demand rebounds.
• Rising cases are the main reason for the uncertainty for fuel demand growth and in oil prices.
• On Thursday, closing crude values have decreased. WTI on NYME closed at $41.95/bbl. Prices have decreased by 0.24/bbl in compared to last closing prices. While Brent on Inter Continental Exchange have decreased by 0.08/bbl in compare to last closing price and was assessed around $45.09/bbl. 

$1 = Rs. 74.87

Import Custom Ex. Rate USD/ INR: 76.10

Export Custom Ex. Rate USD/ INR: 74.30