Weekly Methanol Report 23rd October 2020
Weekly Price Trend: 19-10-2020 to 23-10-2020
- The above graph focuses on the Methanol price trend for the current week. Prices remained stable for most of the week. There has been rise in prices for this week.
- By the end of the week prices were assessed at the level of Rs.21.5/Kg for this week.
BOOKING SCENARIO
INDIA & INTERNATIONAL
- This week domestic market prices of Methanol remained flat throughout this week. Prices were assessed in the range of Rs.20-21.5/Kg.
- Prices for India were assessed around USD 265/MT, slightly reduced by USD 2/MT for this week. CFR China prices were assessed around USD 215/MT for this week. Prices were increased by USD 8/MT for this week.
- On other side CFR SEA prices were assessed in the range of USD 267/MT.
- Methanol the main product of Indian market has now increased its reach and the amount of import has also increased. Last two months’ average import was of 85% of last year imports. Still heavy stock is available at Indian ports.
- Market is in hurry in Methanol segment before Diwali. The prices are likely to show further improvement as traders are in mood to make maximum of their purchase before Diwali.
- There was continuous volatility in crude values for this week. On Thursday WTI crude prices were assessed around USD 40.64/MT, increased by USD 0.61/MT and Brent was assessed at the level of USD 42.64/MT, again increased by USD 0.73/MT.
- The festive season in the country has arrived with positive vibes. With upcoming holiday season and Diwali and ID holidays will add to the fresh buying for the customers. Government data are also showing improvement signs after a long overhaul due to pandemic surge in the country.
- With drop in the fresh cases and government announcement for funding of vaccine has elated the market and has brought fresh purchases. There has been good improvement in the automobile sector with highest recovery.
- Fresh purchase in the home appliances has improved as in Indian market it is general trend to make purchase of home appliances during Diwali. The offers in the market are also lucrative to attract more customers and improve the sell. There lies concern as Indian government has also shown concern for the same. The Health ministry has asked the citizens to maintain social distancing and to avoid social gatherings and sanitisation.
- Iran based Kaveh Methanol has restarted its Methanol plant after a long round of maintenance. Earlier the unit was shutdown on 14th September due to some technical issues. Although earlier it was under maintenance and resumed the production on 12th of September. There has been many shutdown of Methanol units in Middle East in recent past due to technical issues. Unit is based at Dayyar in Iran and has the production capacity of 2.3 MT/Year.
Methanol plant to be completed in Busher
- An undertaking of Sepehr Energy Corporation (SECo), the plant is near to its completion and is likely to resume its commercial production soon.
- Unit is based at South Pars Special Economy Energy Zone, the plant stretches over seven hectares. The plant will have the production capacity of 1.65 million tons of methanol per year. This is the first of three methanol projects developed by the SECo. The other two are Dena and Siraf projects still under construction. The company has said it will focus mainly on exports.
- Dena methanol plant in Asalouyeh will have an annual production capacity of 1.65 million tons, and Siraf will produce the same volume in Dayyer County, Bushehr.
$1 = Rs. 73.63
Import Custom Ex. Rate USD/ INR: 74.25
Export Custom Ex. Rate USD/ INR: 72.55
