Weekly Methanol Report 18th December 2020 21 Dec 20, 10:14 am

Weekly Methanol Report 18th December 2020

Weekly Price Trend: 14-12-2020 to 18-12-2020

The above graph focuses on the Methanol price trend for the current week. Prices –remained highly vulnerable for this week.
By the end of the week prices were assessed at the level of Rs.29.75/Kg for this week. Prices were anticipated to remained slightly weak for this week.

BOOKING SCENARIO

INDIA & INTERNATIONAL

Domestic prices for Methanol were assessed at the level of Rs.29.75/Kg for this week.
Prices for India in international market were assessed around USD 357.5/MT, with an increase of USD 22.5/MTS for this week. CFR China prices were assessed around USD 290/MT for this week. There has been rise of USD 20/MT in China values.
On other side CFR SEA prices were assessed in the range of USD 329/MT.
Domestic market for Methanol remained firm for this week. With onset of winter and outage of major units has led to decline in the supply of the chemical.
Two major shipments of Methanol are expected to arrive soon on Indian ports.
The rise in international market price will boost domestic prices further in next week,
Demand sentiments remained very firm as prices were heading high in this week. This march is expected to continue in next week as well. Further sentiments re likely to remain bullish in the coming week as well.
Softening in the production of Methanol in Iran and China has been the major contributing factors for this rise in international market.
Production of Methanol has been facing contraction. Production in south-west China has also reduced. CNOOC Hainan plans to shut its 600kt/yr methanol plant on Dec 20 for scheduled maintenance lasting 40 days. In addition, imports from Iran are likely to decrease in the first quarter of 2021 with shortage of natural gas supply in Iran.
Many Methanol units based in South West China has been shutdown due to shortage in the supply of natural gas. Currently, only Sichuan Jiuyuan and Luzhou Natural Gas with combined methanol capacity of 900kt/yr have announced shutdown plans. Other plants in Southwest China have not yet received document about gas restrictions from the government.
Earlier, in Northwest China, Qinghai Zhonghao shut its 600kt/yr natural gas-based methanol plant on Nov 1 due to gas restrictions, and plans to restart it in Mar, 2021. Berun Group shut its 400kt/yr and 600kt/yr natural gas-based methanol plants on Nov 1, and plans to restart in Mar, 2021.
Most of the buyers in the South Asian market were focusing on future discussions for the year 2021 rather than concentrating on spot market discussions.
Crude oil prices are on the rise again after a short reversal of fortunes prompted by a huge crude oil inventory build reported by the U.S. Demand from China and India has been on its toes. China has been the main driver of oil prices this year because of its massive refining capacity and growing storage capacity.
Both countries are boosting their refining capacity in the meantime. China is already on track to surpass the United States as the world’s biggest oil refiner next year or the year after. Last year, it added some 1 million bpd to existing capacity, and there is another 1.4 million bpd of capacity under construction.