OfBusiness Chemicals Dailies

8th May’23

Price

• Methanol prices in the domestic market are expected to rise due to a significant decrease in port inventory.
• Last week, Methanol prices closed at Rs.26.50++ EX Mumbai, Rs.26.40++ EX Kandla, Rs.26.75+ EX Hazira, Rs.30.25++ EX Vizag, and Rs.30.50++ EX Kakinada on cash payment terms. However, on Saturday 2nd, half of the importers in Mumbai and Kandla refused to offer Methanol.
• They anticipated a massive inventory drawdown and price increase this week due to increased loading schedules planned by traders and bulk buyers.

Demand and Supply

• The demand for Methanol has been picking up in the market, with primary consumers such as pharma and formaldehyde manufacturers improving their demand.
• Lower prices and seasonal demand from Plywood Industries have also contributed to the rise in demand. The limited incoming cargoes this month have further boosted the market’s sentiments.
• Bulk buyers spot buying in April is shifting to inventory building due to lower prices and limited material availability for May.

News

• The feedstock natural gas prices have increased by 0.09$ to 2.13$.
• Downstream CFR China Prices remain stable at 285 $/Mt, and CFR South East Asia prices are at 350$/Mt.

OFB’s Opinion

• It is predicted that Methanol prices are expected to remain volatile this week as bulk buyers and traders anticipate a price surge due to limited material availability in May and improved buying interest. However, enhanced seasonal demand from formaldehyde manufacturers could turn the market bullish.