Asian Methanol Market Remains Firm With an Uptick in Purchasing Rate
- 26-Jul-2022 4:37 PM
- Journalist: Jai Sen
Shanghai, China- The Asian methanol market trading ended on stable to a little firmer this week with an increase in purchasing action in China, Taiwan, and Southeast Asia. However, India edged lower on a weak trading environment and bearish market. The Chinese Methanol market turned into a bullish sentiment in midweek of July as members processed the news that plants of Bushehr Petrochemical Co. and Marjan Petrochemical Co., notwithstanding two Iranian producers, had turned around July 14 and July 15, respectively separately, due to some technical issues.
China-based market sources said there was limited transportation of cargoes from Iran to China in July and that fewer Iranian methanol cargoes would show up in China in August. As per our trusted source in Beijing, Chinese domestic market sentiments have improved because coal-to-methanol producers were not ready to trade Methanol at low costs. Coal costs had gone up and were barely even at current local prices.
With the week ending on July 22, the price of Methanol in China was USD 300/ton CFR Qingdao.
In Southeast Asia, the costs of Methanol stayed on the lower end with frail buying and weak market essentials. Trade activities remained thin amid a wide demand/supply gap in the Asian market. In India, the price of Methanol on July 25 was USD 311/ton Ex-Mumbai.
According to ChemAnalyst, Methanol prices may rebound with an improvement in the market fundamentals. Coal prices in the region may increase, and producers may increase the cost of Petrochemicals. Interruption of plant operation in Iran will increase the price dynamics in the Asian market. Cargoes loaded to Iran reduced, and China’s imports in August will shrink. In addition, the port inventories will likely decrease, and a production cut in domestic coal-based Methanol plants will further support the prices. Fluctuations in crude and Natural Gas prices will also remain the key factor for the rise in Methanol prices.