Weak MEG, PTA Chemical Industrys impact domestic prices
Ample inventory in S Korea, Taiwan
Sentiment in the Chinese Methanol Prices was weak Friday following the monoethylene glycol and purified terephthalic acid market. Methanol end-users kept their buying indications unchanged at $260/ mt CFR, while selling indications ranged from $270/mt CFR to a premium of 1%-2.5% to formula price. A trade for a 5,000-mt cargo of Southeast Asian origin Methanol Prices was heard done at $293/mt CFR for mid-May arrival. End-users and Chinese traders said the methanol Chemical Industry was expected to see some downside next week and the $293/ mt level was not repeatable. The most actively traded September contract on the Zhengzhou Commodity Exchanged closed Yuan 68/mt lower at Yuan 2,291/mt Friday. In South Korea, traders had ample inventory and domestic demand was tepid, sources said. Domestic cargoes were traded at Won 385/kg (Methanol Prices), same level as last week, trade sources said. Trading was thin in Taiwan. “It’s a very weak market with ample supply and weak demand, following the softening China market,” a trader said. Elsewhere in India, a Middle East producer sold 10,000 mt of Methanol Prices to an Indian trader via a tender which closed Friday at $337/mt CFR. The cargo is expected to arrive at West Coast India around May 14.
CFR China Methanol Prices were assessed at $279/mt, down $7/mt day on day, tracking steep falls in domestic prices and below an offer at $293/ mt CFR for cargoes arriving in the second-half May. Chinese domestic prices fell Yuan 46/mt day on day and Yuan 83/mt week on week, to Yuan 2,292/mt Friday, amid discussions heard at Yuan 2,280-2,300/ mt (Methanol Prices). The CFR Southeast Asia marker was assessed at $333/mt Friday, unchanged from Friday and below an offer at $335/mt CFR. The CFR Korea marker was assessed steady week on week at $325/mt and below an offer at $330/mt CFR. The CFR Taiwan marker was assessed at $294/mt Friday, down $6/mt (Methanol Prices) on week, tracking the Chinese market (Methanol Prices).