Category

Countries

Oversupplies of Methanol results in bearish spot prices in the global market

Oversupplies of Methanol results in bearish spot prices in the global market

Oversupplies of Methanol results in bearish spot prices in the global market

  • 13-Apr-2022 3:45 PM
  • Journalist: Nicholas Seifield

Chinese traders are downsizing imports of Russian coal as they struggle to get support from state banks stressed over possible assent after Russia invaded Ukraine, in the early indications of supply interruptions from the world's third-largest coal seller. Coal costs from other exporters like Indonesia, Australia, and South Africa have additionally bounced following the rising conflict. However, Asian methanol prices are observed to be on the softer end with reducing crude and Natural Gas prices. In China, the price of Methanol was observed to be USD 390/ton CFR Qingdao with a weekly declination of 1.28% when observed on 8th April. China returned to the market after two days of public holiday on 6th April with muted sentiments. Chinese Methanol futures also fell, and Zhengzhou Commodity Exchange traded lower than the previous week. Increase in exports of Methanol cargoes from Iran, Saudi Arabia, and Venezuela resulted in stockpiling of inventories in the Indian and Chinese markets.

In Europe, the Methanol cargoes were full with stockpiling in the domestic market. The availability of non-sanctioned spot cargo was not tight with the increase in spot volume in the northeast Asian region. Methanol stocks in Rotterdam are currently full of oversupplies and weak market sentiments. However, prices in Europe and USA are still on the higher end. Although, the demand is steady, with disruption in supply in the upcoming weeks, the costs can increase. However, European monthly contract prices lifted by USD 78.47/ton for the shipments in April. In Germany, the price of Methanol on 8th April surged to USD 590/ton with a weekly increment of 1.72%.

According to ChemAnalyst, the price of Methanol will slip in the upcoming months due to surging exports from Russia and Iran, resulting in stockpiling of inventories. The future of spot cargo in the Asian region is expected to remain weak, while fundamentals will more likely remain balanced as the regional producers can shut their Methanol plants for scheduled maintenance in the Southeast Asian market. The increasing price gap between suppliers and buyers in the European region can mute the market fundamentals. However, due to increasing freight charges, logistics constraints can hamper the prices of imported cargo from Russia and other regions.

24X7

Track Real Time Prices

Related News

Adequate Inventory Slows the Global Methanol Prices
  • 24-Nov-2022 5:53 PM
  • Journalist: Li Hua
Tightening Supplies and Brisk Energy Values Support the Global Methanol prices
  • 29-Sep-2022 4:27 PM
  • Journalist: Jung Hoon
Reviving Purchasing Esteem Among Suppliers Surge the Global Methanol prices
  • 07-Sep-2022 3:41 PM
  • Journalist: Patricia Jose Perez
Rising Inventories Cool Down Methanol Prices Globally
  • 10-Aug-2022 4:50 PM
  • Journalist: Henry Locke