Methanol Weekly Report 8 November 2019

Weekly Price Trend: 04-11-2019 to 08-11--2019

• The above graph focuses on the Methanol price trend for the current week. Prices remained vulnerable throughout this week. Domestic prices were assessed at the level of Rs.17.25/Kg for bulk quantity by end of the week.
• By the end of the week prices were assessed around Rs 17.25/Kg for Kandla and Mumbai ports.

Booking Scenario

INDIA&INTERNATIONAL 

• This week domestic market prices of Methanol have reduced slightly with changes in the domestic market demand. There has been weakening in the demand sentiments in Indian market. Prices in the domestic market reduced slightly for this week and were assessed at the level of Rs.17.25/Kg for bulk quantity.
• CFR India prices were assessed around USD 213/MTS, slightly increased by USD 2/MT for this week.
• CFR China prices were assessed around USD 217-237/MT reduced by USD 5/MT for this week in compare to last week’s closing values for this week.
• Crude prices have been under pressure as uncertainties around the 16-month long trade war between the United States and China exhausted the demand prospects for oil. No concrete outcome of the prolonged trade and tariff spat continue to undermine the demand prospects for Crude and push the prices lower.
• Weak economic data from China and U.S. amid fading optimism over a possible trade deal between U.S. & China might weigh on the prices.
• Moreover, rising U.S. Crude inventory levels might further weigh on the prices. On the MCX, oil prices are expected to trade lower today; international markets are trading lower by 0.12 percent at $56.28 per barrel.
• On Thursday, closing crude values have increased. WTI on NYME closed at $57.15/bbl. Prices have increased by 0.80/bbl in compared to last closing prices. While Brent on Inter Continental Exchange is increased by 0.55/bbl in compare to last closing price and was assessed around $62.29/bbl. 

Unplanned outage reported at MTO unit of Jiutai Energy

• Jiutai Energy Group has shutdown its MTO unit on emergency basis. The company has put an halt to the operations of the unit owing to mechanical issues. The plant is likely to remain off-line for about 4-5 days.
• Unit is based at Inner Mongolia, the MTO plant has an ethylene capacity of 150,000 mt/year and propylene capacity of 200,000 mt/year.

Saudi's SABIC ups stake in methanol JV after $150m deal

• Saudi Basic Industries Corporation (SABIC) has acquired an additional 25 percent stake in its joint venture in Saudi Methanol Company (Ar-Razi) with the Japan Saudi Arabia Methanol Company (JSMC) in a $150 million deal. SABIC also simultaneously extended its partnership with JSMC in Ar-Razi for 20 years, for which JSMC agreed to pay SABIC $1.35 billion. 

METHANEX announced its Asian contract prices for the month of November 2019

• Canada based Methanex has posted its North American and Asian contract prices for the month of November 2019. Asian contract prices remained unchanged for this week. Prices posted for November were USD 295/MT with no change in these values. Prices posted for North America is USD 342/MT.

$1 = Rs. 71.24

Import Custom Ex. Rate USD/ INR: 72.00

Export Custom Ex. Rate USD/ INR: 70.30