Commentary

Methanol

Insights on Methanol Price Movement

Methanol prices gained value almost by 3.7 per cent on Monday in tandem with strengthened Asian petrochemical markets led by strong Chinese futures amid bullish demand outlook which seems returning to normal levels as the nation gets a better hold over the coronavirus spread. Methanol prices in India have surged almost by 17.5% on QoQ basis owing to higher sales volumes as activity picks up in this month. Ex-Depot Mumbai Methanol Daily Bulk prices were assessed at INR 21000 per MT while week-on-week variation remained almost muted on the week ending 16th October. 

19-Oct-2020

Insights on Methanol Price Movement

Methanol cargoes were heard trading at lower rates hovering around $279 per MT this week on the back of reasonable availability of the middle eastern cargoes. Prices have been assessed from stable to lower despite a major relief since the beginning of October due to increase in raw material prices. The crude oil seemed range-bound throughout this week despite showing much needed recovery in Q2. West Texas Intermediate crude was down 1.63 percent quoting at $39.94 per barrel, while Brent crude, slipped by 1.45 percent to $42.23 per barrel on Monday. Commenting on the market outlook, players are eyeing on substantial improvement in buying as downstream sectors head towards recovery ahead of the festive season.

12-Oct-2020

Insights on Methanol Price Movement

Methanol futures bounced back as local players reported expanded margins on the back recovering fundamentals. Prices gained as much as 4% to hit this week’s high alongside the monthly futures which rose in tandem with hovering optimism in the Asian markets for two months in a row. This was backed by strong demand from Methanol-to-olefin (MTO) sectors as several Asian plants resumed operations and ramped up production after plant outages in the previous quarter. Players anticipate margin improvement to continue at least for this month driven by market growth and better buying sentiments.

05-Oct-2020

Insights on Methanol Price Movement

Methanol prices lost grounds to INR 20 per kg battered by weakened demand and availability of low cost and stranded natural gas. The domestic Methanol market outlook, however, seems to turn optimistic as the month ended with Coal India Limited (CIL) floating a global tender inviting bids for setting up the first coal to methanol (C2M) plant of its kind in India. The plant set-up would be based on surface coal gasification route on Build-Own-Operate (BOO) model and is targeting to produce around 676 KT of Methanol annually which would be used for blending with petrol up to 15%.

29-Sep-2020

Insights on Methanol Price Movement

Indian Methanol hit several weeks low to the levels of INR 18 per kg Ex-Depot Mumbai on Monday, while acetic acid prices languished at pressured rates throughout the week. Methanol margins have been severely hit during the second quarter due to weak demand from several downstream sectors causing margins to cumulatively fall despite improving international sentiments.

14-Sep-2020

Insights on Methanol Price Movement

India’s Methanol was pushed higher in the beginning of the September month backed by improved buying interest. Bulk prices increased almost by INR 1.5 per kg on Friday amidst market optimism as traders reaped significant benefits due to ample enquiries. The week also ended with the news of Gujarat State Fertilizers & Chemicals Limited (GSFC) restarting its 525 metric tonnes per annum Methanol plant after six years of closure. Country’s strong resilience to curtail its import dependence and establish a self-reliant India would serve as a springboard for the domestic Methanol players

04-Sep-2020