Methanol Weekly Report 8 Feb 2019
Weekly Price Trend: 04-02-2019 to 08-02-2019
- The above graph focuses on the Methanol price trend for the current week. Prices remained highly vulnerable for this week. There has been firmness in the initial but by end of the week prices declined in domestic market.
- By the end of the week prices were assessed around Rs 26.25/Kg for Kandla and Mumbai ports. Prices increased by Rs.0.25/Kg for this week.
Booking Scenario
INDIA&INTERNATIONAL
- This week domestic market prices of Methanol remained highly vulnerable. Prices increased initially but by end of the week prices have reduced and market closed at Rs.26.25/Kg for both the ports. Prices in the domestic market increased and were assessed to the level of Rs.26.25/Kg for bulk quantity.
- CFR India prices were assessed around USD 305/MTS, increased by USD 15/MT for this week. On other side CFR China prices remained unchanged with no change in values.
- Methanol prices have been highly unpredictable and since last few weeks. With heavy increase in ACP prices last week, values in domestic market remained vulnerable.
- Moreover the ongoing Lunar vacation in China has also slowed down the trade and trading in international market.
- International prices for Methanol for this week were assessed around USD 305/MT increased by USD 15/MT for this week. Methanol values remained flat in China market.
- Benchmark Brent oil inched up on Friday but was heading for a weekly loss, pulled down by worries about a global economic slowdown, although OPEC-led supply cuts and U.S. sanctions against Venezuela provided crude with some support.
- U.S. President Donald Trump said on Thursday that he did not plan to meet Chinese President Xi Jinping before a March 1 deadline set by the two countries to strike a trade deal.
- Adding to demand concerns, the European Commission sharply cut its forecasts for euro zone economic growth due to global trade tensions and an array of domestic challenges.
- Supply cuts led by the Organization of the Petroleum Exporting Countries lent support. OPEC kingpin Saudi Arabia reduced its output in January by about 400,000 barrels per day (bpd) to 10.24 million bpd, OPEC sources said.
- Another risk to supply comes from Venezuela after the implementation of U.S. sanctions against the OPEC member's petroleum industry in late January. Analysts expect this move to knock out 300,000-500,000 bpd of exports.
PLANT NEWS
Methanol plant restarted by Chongqing Kabeile Chemical
- Chongqing Kabeile Chemical has restarted its Methanol plant after brief maintenance. Earlier the unit was shut down in the last week of December in 2018 and has resumed its production in the last week. The other reason for this shut down was also shortage in the supply of natural gas. Unit is based at Chongqing, China and has the production capacity of 8,50,000 tonnes/year.
$1 = Rs. 71.18
Import Custom Ex. Rate USD/ INR: 72.65
Export Custom Ex. Rate USD/ INR: 70.95
