Methanol Weekly Report 14 August 2020

Weekly Price Trend: 08-08-2020 to 14-08-2020

• The above graph focuses on the Methanol price trend for the current week. Pricesremained stable throughout this week. Although market has been operating at slower rate in Methanol segment.

• By the end of the week by R.17.75/Kg for this week. There has been decline in values in domestic market for this week.

BOOKING SCENARIO

INDIA&INTERNATIONAL

• This week domestic market prices of Methanol have reduced slightly as there has been decline in domestic values past few weeks.
• Prices for India were assessed around USD 150/MT, with no change in values for this week. CFR China prices were assessed around USD 166/MT for this week.
• On other side CFR SEA prices were assessed in the range of USD 228-239/MT.
• International Methanol Company (IMC) has shutdown its Methanol unit abruptly. The duration for this shutdown has not been specified yet. Plant is located at Jubail, South Arabia and has the production capacity of 967 million MT/year.
• There have been heavy rains in the western part of India specifically Mumbai which has halted all the port as well as other operations.
• There has been mixed trend in petrochemical market. Prices for the specific category of chemicals have been declining with slowdown in demand. Petrochemical segment has been struggling owing oversupply. There has been steep decline in consumption as most of the economies in Asian subcontinent are passing through major recession phase.
• To add to their woes the downstream industry continues to operate at reduced rates due to poor demand and supply factors. Inventories are piling up in domestic industry which is an alarming signal for everyone.
• Most major countries in southeast Asia posted sharp economic contractions in the second quarter, while the number of infections in countries such as Indonesia, the Philippines and India continue to spike.
• Producers are not lowering offers substantially to maintain some margins due to a relatively stable feedstock acetic acid market.
• China, which was the original epicentre of the outbreak, new cases are still being reported daily.
• India stands fourth in the tally of highest number of Covid infections

 $1 = Rs. 74.88

Import Custom Ex. Rate USD/ INR: 75.75

Export Custom Ex. Rate USD/ INR: 74.00