With reviving demand and surging Natural Gas, Methanol price in Asian market accelerated
- 05-Apr-2022 2:05 PM
- Journalist: Nina Jiang
With the increase in the trading market and easing exports of Methanol from Russia to Ukraine, the market sentiments were tepid. On 1st April, the price of Methanol in China's domestic market was USD 392/ton CFR Qingdao with a weekly inclination of 1.82%. It was heard that 20,000MT Methanol cargoes moved from Russia to China, which is expected to provide sufficient stock with easing supplies. Despite weak demand in the domestic market due to Covid resurgence, the trading activities remained vigorous. Methanol's downstream derivative market, namely Chloroform, and Acetic acid, also remained healthy. In India, the market was weak due to weak buying interest, and it is estimated that Russian cargoes will arrive on the Indian coast in the second half of April. On April 1, Bushehr's methanol facility in Iran was shut down due to gas supply constraints on 28th March and it could be operational in the first half of April.
In Europe, the prices of Methanol slipped due to increasing inventories and weak market sentiments. Spot Methanol prices fell with deterred demand and traders were buying the product on a need basis. On 31st March, German Natural Gas company BASF plans to halt the production at its Ludwigshafen complex after Russia said it may require payment in roubles for future gas supply. On 1st April, the price of Methanol in Germany was observed to be USD 578/ton FD Hamburg. In the USA, the prices showed an upward trend with USD 562/ton Ex-Louisiana as of 1st April. Increasing exports of Natural Gas and surging domestic demand resulted in price hike.
According to ChemAnalyst, “Methanol price in the global market will be affected by affordability with Natural Gas price spiking in the upcoming weeks. In Europe, the prices are expected to continue rising and cargoes can flow from the Middle East and North America to Europe once the arbitrage spread widens. With sanctions imposed, methanol trading in Europe will be affected and surging demand can increase the price. In the Asian market, the prices are expected to rise with strong market sentiments. The recent lockdown in China due to surging Covid cases can accelerate the prices of Methanol in the domestic market.