Solvent prices to decline in India, to be dragged down by falling Methanol prices in international markets – 31 Mar 2014

Most solvents will become cheaper in India in the month of April this year as price of Methanol has been falling in key international markets. Methanol is a key ingredient in production of solvents like Formaldehyde, Para Formaldehyde, etc. Lately, prices of Methanol have been traversing southwards in Asian region due to over-supply caused by several plants ramping up productions and weak off takes. Commenting on the solvent pricing scenario, a Delhi-based trader told Indianpetrochem," Prices of associated solvents will come down in India in the next month as Methanol prices declined significantly in international markets." He further commented," Methanol bulk price has already declined by Rs 10 a litre, to Rs 25 a litre, due to international price effect." 
 

Moreover, the appreciating INR against the USD will also play dominant role in lowering Methanol import prices. The Indian currency has already showed signs of appreciation. 
 

Apart from the Delhi-based trader, several traders in other major chemical markets in the country expressed optimism of softening solvent prices in the country by April 2014.
 

Market sources have revealed that the current import booking prices for Methanol are at around Rs 335-340 per metric tonne, on CFR India basis; and the booking price for the imports from China is at around $350 per metric tonne CFR.
 

Besides, Methanex has quoted its Methanol price for the Asian region at $480 per metric tonne for April 2014.