Presently methanol market is moving with stable-to-soft velocity. No major deals and discussion has been heard from end users. Domestic methanol prices were assessed at the level of Rs. 26.25/kg for Kandla and Mumbai ports of India.
In China, there is a quiet period of demand on China’s Lunar New Year holidays, which falls between 15-21 February. China’s methanol imports in February will go down due to Spring Festival holiday. This year global methanol production capacity is expected to go up but most of the new unit will come on line after 1st quarter.
As per source, in china natural gas based some methanol plants are likely to restart after spring festival holiday. As the heating season is expected to end and the restrictions on gas-based methanol production may get lifted. This will escalate the production.
Additionally, Methanol plants production will on line during the holiday, while cars for logistics will not be available. Therefore, product inventory will increase after the holiday. Recently downstream plants are reluctant to store feedstock methanol, but after the holiday they will increase the consumption to ramp up production. In addition, the profits of methanol-to-olefins are improving now, and demand for methanol in MTO sector will get boosted.
As per market source, the startup date of new methanol plant in Iran anticipated to delay to the second half of 2018 or even later.
For upcoming methanol outlook, the natural gas based plants will restart but increased material availability will be controlled by the plants turnaround and lower imports. Market players are anticipating that demand for methanol will take an affirmative move as consumption from downstream sectors will escalate. On account of positive bullish demand sentiments from downstream methanol prices also will swell.
