OfBusiness Chemicals Dailies

27th April’23

Price

• The cost of domestic Methanol has decreased after increasing for four days. The price fell by 0.5 rs/kg in all ports to 27++ Ex kandla, 27++ Ex Mumbai, 31++ Ex Vishakhapatnam, and 27++ Ex Mundra on cash payment terms. This happened because of the expectation that cheaper replacement costs would be available in the market. In addition, some traders heard that Russian and Iranian cargoes would arrive on vessels at 269-280$ CIF India.

Demand and Supply

• Demand for Methanol from Pharma and Amines manufacturers has improved this week, which has resulted in bullish sentiments in the market.
• The demand from Formaldehyde manufacturers also increased because of seasonal demand from Plywood industries. Supplies remain good in all ports.
• According to an importer’s opinion, traders and bulk buyers are likely to make inventories at the 26.50-27.00 level. Increased buying interest and firm seasonal demand can push the domestic methanol outlook to bullish for April.

News

• In the international market, Upstream Natural gas prices have increased by 0.16$ to 2.39$/MT, and CFR China Methanol prices remain firm at 299 $/Mt. Downstream Acetic Acid prices increased by 10$ to 365 $/Mt.

OFB’s Dailies

• This week, domestic methanol prices are expected to rise due to heightened buying activity and stronger seasonal demand from downstream markets. However, the market may experience fluctuations and unpredictability due to speculation surrounding Russian and Iranian cargoes, as well as lower replacement costs.