Methanol Chemical Industry

Asian Methanol Chemical Industry: Indian methanol prices ease on fresh supply

Chemical Industry

Chemical Industry news of Asian Methanol

– CFR India slips $10/mt on week

– Buying sentiment muted in China

Fundamentals in the Indian methanol Chemical Industry for the first half of June looked decidedly more bearish compared to three weeks ago. The arrival of fresh cargoes this week and availability of spot cargoes through recent tenders changed the complexion of the Chemical Industry, trade sources said Thursday. Domestic prices over Thursday to Thursday fell to around Rupee 24-24.50/kg compared to Rupee 29/kg a month ago, and cargoes arriving at West Coast India from May 20 onwards were heard offered at Rupee 23.50-24/kg. Shipping fixtures showed an estimated 80,000 mt of methanol is expected to arrive or has arrived at Kandla, Hazira, and Mumbai this week. The cargoes did not include 10,000-30,000 mt which Khark Petrochemical offered in a tender which closed last week, and the 20,000-40,000 mt that Kaveh Methanol Chemical Industry is offering in a tender for second-half of May loading, which closed Thursday. In China, buying sentiment was muted even as methanol futures and domestic prompt spot prices rose. The actively-traded September methanol futures contract on the Zhengzhou Commodity Exchange closed Yuan 14/mt higher at Yuan 2,463/mt Thursday (Chemical Industry).

RATIONALE:

CFR China methanol Chemical Industry price rose $1/mt day on day to be assessed at $283/mt Thursday, in line with firmer local prices. Chinese domestic cargoes were assessed at Yuan 2,345/mt Thursday, up Yuan 20/mt day on day amid discussions heard at Yuan 2,340-2,350/mt. CFR Southeast Asia methanol Chemical Industrial price was assessed unchanged at $332/mt Thursday, under an offer at $340/mt CFR. The CFR India Market fell $10/mt week on week to $300/mt CFR, after taking into consideration Chemical Industry feedback that tradable levels for May 28-Jun 17 were around $300/mt CFR.

 

Chemical Industry
Chemical Industry

US Methanol daily: Week opens to stable spot

Chemical Industry

– Market participants await ITC update

– CFR China marker rises to $280/mt

The week opened Tuesday to the fourth consecutive session of stable spot methanol values for both May and June. May remained at 100 cents/gal FOB USG, while a 1-cent backwardation was kept to put June at 99 cents/gal FOB USG. Market participants continued to wait for official news regarding the operational status of Intercontinental Terminal Company’s Deer Park facility Tuesday, though Unified Command has not confirmed on its website whether or not normal marine traffic has resumed at the terminal. ITC did not respond to a request for comment made Tuesday morning. In Asia, the CFR China marker was up $1/mt (about 0.30 cent/gal) on the day to $280/mt (about 84 cents/gal). S&P Global did not publish assessments for EMEA petrochemicals on Tuesday due to the Early May bank holiday.

RATIONALE:

S&P Global assessed US spot methanol at 100 cents/gal FOB USG for the front month (May) and 99 cents/gal FOB USG for the forward month (June). Both assessments were unchanged on the day and in line with notional talk.

 

Methanol Chemical Industry

Trade heard done at $325/mt CFR Korea 

Thin discussions in Taiwan

Fundamentals in the Korean market were mostly steady, with demand evenly matched by supply, trade sources said Friday. “While operating rate of small-sized end-users is still not good, [operating rate for] midto large-sized end-users’ is healthy,” a trader said. “Demand will be healthy soon,” another trader said. “Lotte BP will be back from their turnaround in June, S-Oil and KEP, will buy June-arrival cargoes,” the source said. While inventory levels in South Korea were normal, domestic methanol prices rose Won 5/kg to Won 390/kg (33 cents/kg) this week as the Won depreciated 3% against the US dollar compared to a month ago, sources said. Meanwhile, a trade for a 4,000 mt cargo arriving mid-June onwards was heard done Friday at $325/mt CFR. A 5,000 mt cargo arriving in the first-half of June was heard offered at $337/mt CFR Korea, and a similiar-sized parcel arriving in H2 June was heard offered at $326/mt CFR Korea, with discussions expected to continue next week. Over in Taiwan, trading activity was thin as endusers’ requirements were mostly covered. “Market is stable to soft due to very weak demand, and no spot demand,” a trade source said. “We now prefer to buy on a need-to basis to avoid losses when prices sharply decline,” he added.

Rational

CFR China methanol was assessed flat day on day at $279/mt Friday, and Chinese domestic methanol prices were also stable day on day at Yuan 2,290/mt, amid thin trading. The CFR Southeast Asia was assessed at $332/mt Friday, unchanged from Friday amid discussions at $325-$333/mt CFR. The CFR Korea marker was assessed at $325/mt and the CFR Taiwan marker at $294, both unchanged week on week, amid thin trading.