Oscillation In Methanol Prices Affects The Petrochemical Market Dynamics
- 28-Jun-2022 5:19 PM
- Journalist: Harold Finch
Mumbai, India- When we focus on the market dynamics of Methanol in Asia, muted purchasing activities kept the prices on the lower end. On 28th June, the cost of Methanol in India slipped to USD 336/ton Ex-Mumbai. The Saudi Arabian and Iranian Cargoes may also be down for July because of lackluster demand and weak market sentiments in the regional market. The Ex-tank discussion remained softer around Rupees 28-28.25/kg levels as Indian buyers kept their bids lower. Imports in India from Russia and Venezuela in July had dropped the futures of the commodity exchanges and are expecting the prices to drop further.
Swayed purchasing and concern over recession affected the Petrochemical in the European market. However, the situation over OPEC remains the same, whether they can pump enough crude and Natural Gas as sanctions against Russia ramp up. With the week ending on 24-June, the price of Methanol in Germany slipped to USD 671/ton FD Hamburg.
With moderate inflows of Natural feedstock gas in the European region, the future prices for Gas delivered to Northwest Europe in July 2022 may fall due to healthy imports from the US and tepid demand for its downstream derivative products.
However, the prices are still on the upper end but filling storage of products and gap in inventories level narrowing the profit and sales of the enterprises and prices coming off from the high ranks along with revision in the price quotations.
According to ChemAnalyst, the prices of Methanol in Europe and the US are likely to slip with moderately operating downstream industries. Rising European inventories of Methanol among the ports and enterprises can slow the product’s purchasing activities. However, in Southeast and Far East Asia, the prices of Methanol are likely to remain on the lower end with plentiful supply from Saudi Arabia, Iran, and Russia.