This week the bulk price of methanol, Ex-Mumbai, declined by Rs. 1-2 per kg as suppliers (mainly importer) lost the bargaining power to command high prices, as observed last week, and engaged in price war, which dragged down the prices this week. Bulk prices declined this week even as the booking price of methanol gained weight by $5 per metric tonne to $280 per metric tonne CFR India.
Last week, brokers (middlemen) had limited stock of methanol, which gave opportunity for importers to hike the bulk prices, this ultimately got passed on to end customers in the market. However, this week, the prices couldn't sustain at last weeks trading range of Rs. 21-22 per kg and presently the prices settled at Rs. 20.75 per kg at Kandla and Mumbai, as importers got into a price war to release their stock from the port.
Indianpetrochem spoke to an official of Gujarat Narmada Valley Fertilisers & Chemicals Limited (GNFC) and understood that the company isn't releasing its stock in the market as these prices aren't commercially viable for sale. The company last revised its basic price in the month of May, which were around Rs. 29.25 per kg.
Therefore, their current operating rate is 40%, whereby the methanol manufactured is either being captively used or being sold to long terms customers under contract, such as IOCL for production of MTBE (Methyl tert-butyl ether).
On the other hand, Rashtriya Chemicals and Fertilizers Ltd (RCF) is successfully matching its price against cheap import, at present its basic price is around Rs. 21.30 per kg.
Currently, the demand for Methanol is good in the market and going forward the bulk prices are expected to remain stable at this range, according to market insiders.
Note:- All prices are exclusive of all taxes.
(This article was published on the website on August 07, 2014)
Last week, brokers (middlemen) had limited stock of methanol, which gave opportunity for importers to hike the bulk prices, this ultimately got passed on to end customers in the market. However, this week, the prices couldn't sustain at last weeks trading range of Rs. 21-22 per kg and presently the prices settled at Rs. 20.75 per kg at Kandla and Mumbai, as importers got into a price war to release their stock from the port.
Indianpetrochem spoke to an official of Gujarat Narmada Valley Fertilisers & Chemicals Limited (GNFC) and understood that the company isn't releasing its stock in the market as these prices aren't commercially viable for sale. The company last revised its basic price in the month of May, which were around Rs. 29.25 per kg.
Therefore, their current operating rate is 40%, whereby the methanol manufactured is either being captively used or being sold to long terms customers under contract, such as IOCL for production of MTBE (Methyl tert-butyl ether).
On the other hand, Rashtriya Chemicals and Fertilizers Ltd (RCF) is successfully matching its price against cheap import, at present its basic price is around Rs. 21.30 per kg.
Currently, the demand for Methanol is good in the market and going forward the bulk prices are expected to remain stable at this range, according to market insiders.
Note:- All prices are exclusive of all taxes.
(This article was published on the website on August 07, 2014)
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