Methanol prices in Mumbai have declined due to oversupply of imports at the Mumbai port. The booking price for Methanol have dropped from $500 per metric tonne to $480 per metric tonne over the course of a week at Mumbai port. In line with this, GNFC also decreased its basic price by Rs 1.5 per kg on 8th March, 2014. Indianpetrochem spoke to some traders to comprehend the demand-supply dynamics for Methanol in India, specifically Mumbai.
Our market reporters surveyed the Mumbai market and understood that currently there is an over supply of imports for Methanol at the Mumbai port. This oversupply at port is indicated by the consequential drop in booking price for the petrochemical to the Mumbai port.
In the last week of February, 2014 the booking price for Methanol was at $525 per metric tonne, this dropped to $500 per metric tonne in the first week of March. Currently, the booking price is at $480 per metric tonne for the petrochemical at Mumbai port.
In line with these offer price for imports, a Mumbai based trader told the website, "The demand for Methanol in the country is good but presently imports are flooding the domestic market. As such, there is an expectation that the bulk price (for imports) at Mumbai market will drop from current level of Rs. 34.5 per kg (exclusive of all taxes) to levels of Rs. 31-32 per kg (exclusive of all taxes) in the short-run".
At present the barrel price for Methanol in Mumbai market is Rs. 37 per liter (exclusive of taxes).
As a result of this market trend GNFC also revised its ex- factory price from Rs. 37 per kg (exclusive of all taxes) to Rs. 35.5 per kg (exclusive of all taxes) on 8th March, 2014.
Meanwhile another trader in the Mumbai market speculated that there will be a price correction in the near future as Oman's Salalah Methanol Company will go for a planned shut down in the month of April for 40-50 days. The traders expect this turnaround to have an impact on the imports coming into the country as Oman is a top import countries for Methanol to India.
According to the Ministry of Chemicals and Fertilizers, Iran, Saudia Arabia and Oman are the top three importing countries for Methanol in India, whereby the total imports from these countries were 765,245 metric tonne , 451,778 metric tonne and 114,778 metric tonne, respectively in FY 2012-13.
On another note, the website spoke to a trader in Gujarat market and understood that apart from producing industrial chemicals, one of the main end-uses for Methanol is in pesticides, as such, he added that the demand for the petrochemical remains good during January to April every year.
In conclusion, it is indicated that in the short to medium term there will be a downward correction in the market prices as cheaper imports fill the Indian market, while the demand for Methanol remains steady in the country.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar@indianpetrochem.com)
Our market reporters surveyed the Mumbai market and understood that currently there is an over supply of imports for Methanol at the Mumbai port. This oversupply at port is indicated by the consequential drop in booking price for the petrochemical to the Mumbai port.
In the last week of February, 2014 the booking price for Methanol was at $525 per metric tonne, this dropped to $500 per metric tonne in the first week of March. Currently, the booking price is at $480 per metric tonne for the petrochemical at Mumbai port.
In line with these offer price for imports, a Mumbai based trader told the website, "The demand for Methanol in the country is good but presently imports are flooding the domestic market. As such, there is an expectation that the bulk price (for imports) at Mumbai market will drop from current level of Rs. 34.5 per kg (exclusive of all taxes) to levels of Rs. 31-32 per kg (exclusive of all taxes) in the short-run".
At present the barrel price for Methanol in Mumbai market is Rs. 37 per liter (exclusive of taxes).
As a result of this market trend GNFC also revised its ex- factory price from Rs. 37 per kg (exclusive of all taxes) to Rs. 35.5 per kg (exclusive of all taxes) on 8th March, 2014.
Meanwhile another trader in the Mumbai market speculated that there will be a price correction in the near future as Oman's Salalah Methanol Company will go for a planned shut down in the month of April for 40-50 days. The traders expect this turnaround to have an impact on the imports coming into the country as Oman is a top import countries for Methanol to India.
According to the Ministry of Chemicals and Fertilizers, Iran, Saudia Arabia and Oman are the top three importing countries for Methanol in India, whereby the total imports from these countries were 765,245 metric tonne , 451,778 metric tonne and 114,778 metric tonne, respectively in FY 2012-13.
On another note, the website spoke to a trader in Gujarat market and understood that apart from producing industrial chemicals, one of the main end-uses for Methanol is in pesticides, as such, he added that the demand for the petrochemical remains good during January to April every year.
In conclusion, it is indicated that in the short to medium term there will be a downward correction in the market prices as cheaper imports fill the Indian market, while the demand for Methanol remains steady in the country.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar@indianpetrochem.com)
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