Weekly Methanol Report 4th December 2020
Weekly Price Trend: 30-11-2020 to 04-12-2020
- The above graph focuses on the Methanol price trend for the current week. Prices remained stable-to-firm for this week.
- By the end of the week prices were assessed at the level of Rs.28/Kg for this week, increased by Rs3.5/Kg for this week. Prices were anticipated to increase in the next week.
BOOKING SCENARIO
INDIA & INTERNATIONAL
- Domestic prices for Methanol were assessed at the level of Rs.28/Kg for this week.
- Prices for India in international market were assessed around USD 305/MT, with an increase of USD 10/MTS for this week. CFR China prices were assessed around USD 260/MT for this week. There has been rise of USD 8/MT in China values.
- On other side CFR SEA prices were assessed in the range of USD 290/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.
- Demand sentiments remained very firm as prices were heading high in this week. This march is expected to continue in next week as well.
- Past few week’s Indian market are in bit confused state. What could be the Biden policy towards Iran has been an overtasked question and concern. Overall the supply constraints from Iran will dominate even in the first quarter of 2021.
- Around 75% of Methanol was imported from Iran before February 2020, as buyers made the most of relatively lax banking provisions and customs norms, despite the withdrawal of the US' waiver to trade with Iran in May 2019. Adding to such supply concerns, the Bureau of Indian Standards (BIS) may introduce stricter mandatory quality controls on all methanol imported to India in 2021.
- While India's usual suppliers will be able to produce as per new specifications, some traders expressed concerns over whether BIS inspectors would be able to hand out necessary certifications amid procedural delays due to COVID-19.
- In China market prices for imported Methanol has been heading high. This positive trend is likely to continue in the first quarter of 2021 as the major supplier Iran will continue to tightened its supply in the month of January and February.
- Oil price rallied on positive term on Friday closing as OPEC+ agrees to partial increases in production beginning in January, preventing a breakdown in the agreement.WTI was assessed at the level of $ 45.64/bbl increased by 0.36/bbl whereas Brent was increased by 0.46/bbl and were assessed at the level of $48.71/bbl.
Methanol plant shutdown by Equinor due to major fire
- A major fire was reported at Tjeldbergodden industrial facility of Norway. Whole of the staff was evacuated and plant was shutdown to control the fire. This plant based at Norway is considered as one of the largest Methanol plant of Europe. The company later released a statement saying it was working to get an overview of the consequences and the cause of the fire.
- The Tjeldbergodden facility consists of three plants; a methanol plant, where the fire broke out, a gas receiving terminal and an air separation plant.
Methanol production restarted by OCI Natgasoline
- OCI Natgasoline has restarted its Methanol plant after a brief round of maintenance. Earlier the unit was shutdown for maintenance. Unit is based at Beaumont, Texas in US and has the production capacity of 1.8 mln mt/year. It is one of the largest Methanol facility in US.
$1 = Rs. 73.80
Import Custom Ex. Rate USD/ INR: 74.70
Export Custom Ex. Rate USD/ INR: 73.00
