Methanol Weekly Report 7 February 2020
Weekly Price Trend: 03-02-2020 to 07-02-2020
- The above graph focuses on the Methanol price trend for the current week. Prices have fluctuated for most of the week. Domestic prices were assessed at the level of Rs.22/Kg, reduced by Rs.0.5/Kg for this week.
- By the end of the week prices were assessed around Rs 22/Kg for Kandla and Mumbai ports.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol have remained weak and slow. There has been slight slowdown in the demand sentiments. Prices in the domestic market were assessed at the level of Rs.22/Kg for bulk quantity.
- CFR India prices were assessed around USD 210/MTS, with plunge in prices for this week.
- China market also remained weak for this week. CFR China prices were assessed around USD 230/MT for this week.
- Benzene the major source for aromatic products also decline heavily for this week. FOB Korea values for Benzene were assessed around USD 658/MT for this week, reduced by USD 10/MT in one week while CFR China prices were assessed at the level of USD 680/MT for this week again reduced by USD10/MT for this week.
- Oil prices rose on Friday after Russia said it backs a recommendation for the OPEC and its producer allies to deepen output cuts amid contracting demand for crude as China battles the coronavirus epidemic that has hit global markets.
- A panel advising the Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia, known as the OPEC+ group, suggested provisionally cutting output by 600,000 barrels per day (bpd),
- On back of global epidemic, Oil prices have fallen by more than a fifth in last two weeks.
- Chinese President Xi Jinping declared a "people's war" on the epidemic as China's Hubei province, where Wuhan is located, reported 69 new deaths, taking the total in the country to more than 600.
- The impact of the coronavirus on the oil market remains largely a Chinese demand story with weakening jet fuel demand and economic run cuts, but demand destruction outside of China has been minimal, for now," RBC Capital Markets analysts said in a note.
PLANT NEWS
QAFAC shut down its Methanol plant
Qatar Fuel Additive Co (QAFAC) has shut down its Methanol plant due to its technical issues. The operations have been put on halt in the first week of January 2020. Company has not specified yet for how long the unit is likely to remain off-stream.
Unit is based at Messaieed in Qatar, the natural gas based Methanol plant has a production capacity of 1.1 mln mt/year.
Methanol plant was shut down by Kaveh Methanol
Methanol was shut down by Kaveh Methanol due to shortage in the supply of natural gas. Since natural gas is the feedstock supply for Methanol plant. The unit was shut down last week and is likely to last till winter season in Iran. The government of feedstock supply of natural gas has been curtailed as it has been diverted towards domestic sector.
$1 = Rs. 71.46
Import Custom Ex. Rate USD/ INR: 71.65
Export Custom Ex. Rate USD/ INR: 69.95
