Supply glut keeps Methanol prices low in India – 4 Jul 2014

The bulk prices of Methanol have been stable in the Indian market at trading range of Rs.22- 23 per kg during June, 2014. Methanol prices have remained unaffected by Brent Crude price fluctuations which has significantly impacted downstream petrochemicals, like Benzene and Ethylene, in international markets.

There was one outlier in prices on 17th June, 2014, (closing price) when bulk prices jumped to trading range of Rs. 23-24 per kg, according to Indianpetrochem's price database. On this a trader reported " There was a rumor in the market that the booking price of Methanol would rise due to the political tension in Iran. However, that never happened, hence, the price went down to trading range of of Rs. 22-23 per kg, the very next day".

The website gathers that the booking price of Methanol has been stable at $300-310 per metric tonne CFR India for the past two months, and continues to remain unaffected at these levels. While the demand has been moderate for the chemical, whereby most end users aren't building huge inventories as they believe that the prices will remain at this range in the near future.

"There are more than 60,000 metric tonnes of Methanol at Mumbai ports and most importers are facing a problem with clearing their stock as they are being imposed with hefty docking charges and evaporation problem (of the chemical), while big buyers from Formaldehyde manufacturing, Paint and Pharmaceutical industries are refraining from bulk purchases" an importer informed the website.

Following Methanol prices, Formaldehyde prices also haven't moved significantly in the country as well. Formaldehyde prices have been in stable at range of  Rs.16-17 per kg, while the demand for it is moderate amongst end users.

Ongoing supply glut of Methanol is expected to keep the prices at the current range in the near future. At present Methanol trades at Rs. 22 per kg , Ex- Mumbai and Rs. 21.75 per kg , Ex- Kandla.

Note:- All prices are exclusive of all taxes.