19 September 2007 04:36 [Source: ICIS news]
SINGAPORE (ICIS news)--Indian importers are re-exporting methanol amid a global supply crunch, traders from the country said on Wednesday.
High inventories of previously imported material and the large price difference between Indian and other regional and European methanol prices had opened an arbitrage window for such a re-export, distributors said.
Various estimates of between 6,000 to 26,000 tonnes of re-export volume were given by different market sources.
Product has been fixed for re-export at around $265-275/tonne FOB (free on board) West Coast (WC) ?xml:namespace>
Methanol prices had languished in the mid $200’s/tonne CFR (cost and freight) WC India in August amid the inventory overhang from early this year when large quantities of methanol were shipped into the country at close to $400/tonne.
This high priced methanol is now being re-exported as regional and global values have now risen and opened the arbitrage between
Asian methanol prices have surged between 7-11% in the past four weeks to $280-320/tonne CFR while prices in
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