Deter Interest From End-User Oscillates Prices of Methanol in Asian Market
- 30-May-2022 4:28 PM
- Journalist: Jacob Kutchner
Shanghai, China- The methanol market in Asia slipped to its lowest level, where oversupplies and stockpiling of inventories resulted in such a price trend. As of 27th May, the prices of Methanol in China slipped to USD 345/ton CFR Qingdao. The demand for Methanol remained on the lower end in East China ebbed due to Mineral Turpentine Oil (MTO) plant production cut and shutting for maintenance.
In terms of inventories, they increased drastically due to a surge in the influx of Iranian Methanol cargoes and relaxation in port congestions, which leads to discharges.
When we observe the market fundamentals of Southeast Asia, the prices remained weak with the region's ample supply and surged spot volume from the Middle east. Due to muted fundamentals in the region, traders were observed purchasing the product on a need-to basis and expected the prices to drop further.
Petronas Chemicals, a leading chemical producer in Southeast Asia, shut its 1.7 million MT/yr No 2 Methanol plant on 13 May and undergone 60 days of maintenance. However, the operating rate of China's domestic plants rebounded in late May.
In Taiwan, the CFR Methanol prices are coming to the ports with discounts in their prices to clear their existing stocks. Sellers keep up the momentum by providing the exact offers for the upcoming months.
In India, the price of Methanol is observed to be USD 377/ton at Ex-Mumbai as of 30th May. Weak market sentiments along with sufficient product availability resulted in such price trends.
According to ChemAnalyst, the prices of Methanol in the Asian market are expected to remain tepid with a stable price trend. Inventories of Methanol among the ports are expected to decline, which will relax the prices. However, the prices will remain lower, showcasing low purchases and deteriorating demand. Imports of Methanol from Iran and Saudi Arabia to the Southeast Asian region are expected to reduce due to oversupplies.