Weekly Methanol Report 8th January 2021 11 Jan 21, 08:19 am

Weekly Methanol Report 8th January 2021

Weekly Price Trend: 04-01-2021 to 08-01-2021

The above graph focuses on the Methanol price trend for the current week. Prices remained soft-to-stable for this week.
By the end of the week prices were assessed at the level of Rs.29/Kg for this week. Prices were anticipated to remained weak for this week.

BOOKING SCENARIO

INDIA & INTERNATIONAL

Domestic prices for Methanol were assessed at the level of Rs.29/Kg for this week.
Prices for India in international market were assessed around USD 382/MT, with an increase of USD 12/MTS for this week. CFR China prices were assessed around USD 309/MT for this week. There has been rise of USD 9/MT in China values.
FOB Korea values were assessed around USD 373/MT for this week.
On other side CFR SEA prices were assessed in the range of USD 380/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 for chemical has remained stable and is likely to continue this trend in next few weeks as well. With upcoming festivals in next week in states like Gujarat and Maharashtra the supply is likely to remain dull over here.
Moreover , the demand in China market will improve by many folds in next few weeks as it will undergo major holiday season. Manufacturers will be in hurry to clear out their stock while purchase will be increased as most of them will be in mood to store it at cheaper rates.
There has been rise in the supply of chemical in US market in the last month of 2020. Imports increased by more than 75% in last two months.
Plant shutdown and slow production at domestic level pushed the demand for more imports. Methanex has been one of the major supplier of Methanol to US market.
In the crude sector Crude prices have been edging higher throughout this week. There has been highly positive start for crude prices this year with solid gains after Saudi Arabia unexpectedly pledged to cut additional production, rally in global equity markets, jump in treasury yields, and a sharp decline in US crude stockpiles.
Crude oil prices surged above $52 per barrel witnessing strong buying on-demand recovery hopes and lower supply expectations. The boost in the crude oil prices came after Saudi Arabia voluntarily pledged to cut oil output by 1 mb per day after OPEC plus nations left the oil output quota unchanged. Crude oil prices were supported by risk-on sentiments with strong equity indices and recovery in US bond yields.
The vaccine rollouts in some parts of the world and beginning of the emergency use of a vaccine in many countries has also boosted prospects of oil demand recovery.