Published on April 23, 2018
Methanol prices have escalated sharply in last week. China methanol prices were higher on tight supply situation. Average operating rate of domestic plants plunged in turnaround season and some overseas plants in Middle East and Southeast Asia are shut for maintenance.
In domestic market, methanol prices were reached to its peak level of Rs 33/kg on shortage of material and bullish demand sentiments from end users.
As per plant information, in China Sailboat’s MTO plant and Nanjing Wison’s MTO plant are planning to shut its plant for maintenance. Plants are having the production capacity of 800kt/yr and 295kt/yr respectively. This will minimize the stipulation for methanol.
Market players said that, In China domestic methanol plants operating rate has been escalated and the number of capacity getting restarted was higher than that shut for maintenance in the last week. Plants operating rate rebounded after hitting the bottom level, and is expected to increase more.
Market predictors said that, previous week methanol prices had increased on account of shortage of material and prices were at its peak level. In near term it is anticipated that supply demand fundamental will settle and then prices will go down as further increase in prices is limited.
