With the beginning of the month November domestic methanol prices has started upward move. On 1st nov methanol prices were evaluated around Rs 23.5 for Kandla and Mumbai ports of India and on 28th Nov prices were assessed at Rs 28.25/kg during one month period around 20% prices have increased.
Methanol booking prices also have increased, in the first week of November CFR India methanol prices were evaluated in the range of USD 295-315/mt while in the last week methanol prices have increased by USD 50 and were valued in the range at USD 344-364/mt.
As per market players, the reason behind methanol prices has escalated on shortage of supply and bullish demand sentiments from end users.
In china market prices have escalated as in the end of October Yangmei Hengtong’s MTO plant resumed feedstock methanol procurement. Meanwhile, from other downstream plants also demand has increased resulted methanol prices shoot up.
Higher freight cost also one of the reasons in China demand reinforced in Shandong, the logistics of moving products to restock the market became sluggish. Moreover, the freight cost to transport methanol areas like Shandong region has amplified which has spiral the prices.
As per market participants recently methanol prices have swelled on lesser supply and good demand situation. In China production restrain on account of environmental protection and provide tentative opportunities for market players. For near term it is anticipated that methanol market will settle down from uptrend as several methanol production plants are again coming back to resume production after maintenance which will patch up supply demand imbalance.
