How annual holidays have impacted the prices of Methanol in Asia
- 16-May-2022 3:40 PM
- Journalist: Peter Schmidt
Mumbai-(ChemAnalyst) Let’s dive into the Methanol market of Asia, where the demand fluctuates with oscillations in the price trend. Trading activities in the Asian market remained largely muted as the demand fell due to public holidays. Amid the widening supply and demand uncertainty, the Methanol market remains deterred by deteriorating cost support.
Labor Day and Eid al-Fitr holidays muted the market sentiments, and major producers have softened the pricing sentiment of Methanol and its downstream derivatives market. It's not surprising that the downstream metal acetate market followed the same track as its feedstock. ChemAnalyst have spoken with many traders and manufacturers to gather this information.
In China, the price of Methanol on 13th May slipped to USD 342/ton CFR Qingdao with a weekly declination of 2.28%. In terms of inventories, they shoot up at the ports due to frail demand and abundant supply.
Similarly, the Methanol values in India descended to a lower trading environment, and degrading buying ideas kept the market thin. The suppliers from Kandla, Gujarat, quoted that, “The ex-tank prices in India were stable and there is no shortage issue at Kandla for Methanol although the port is somewhere congested due to shortage issue of acetic acid.” This indicates that the market sentiments for its derivative market are expected to improve in the forecast period with healthy demand.
In South Korea, the Methanol prices accelerated with limited supply from the United States and Saudi Arabia. As per ChemAnalyst, “Due to gradual surging production rates from domestic manufacturers and hasten imports of Methanol in the region, the prices are expected to slow down.”
If we talk about the downstream market, the Asian Gasoline remains strengthened after the public holidays with accelerating demand from the consumer’s end. In India, the demand for Gasoline remained strong with surging Natural Gas and crude oil futures.
Let's wait and see how the Methanol market will behave in the Asian region and affect the downstream market. Stay connected with ChemAnalyst to keep an eye on the Methanol and several other Petrochemical product's futures.