12 October 2010 09:56 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Gujarat Narmada Valley Fertilizers Co (GNFC) has ramped up operations at its 290,000 tonne/year methanol plant on the back of strong local demand, a company source said on Tuesday.
The facility, located in India’s western state of Gujarat, was currently producing around 600-650 tonnes/day of methanol, as compared to 550 tonnes/day last week, the source added.
Meanwhile, GNFC was keeping the fuel oil-based line at the plant idle because of high feedstock costs, the source said.
“We are producing as much as we can. The other [fuel oil] line can only start to be viable if methanol prices are at above $500/tonne (€360/tonne) CFR (cost & freight) India,” the source added.
The source told ICIS that around 250 tonnes/day of the plant’s methanol output was reserved for captive consumption at GNFC’s downstream acetic acid unit and around 350-400 tonnes/day was for sale, the source added.
Domestic methanol prices in India were heard at rupee (Rs) 13.60-13.75/kg ($307–310/tonne) ex-tank, excluding countervailing duty on 12 October, up by Rs0.10/kg from the previous week amid healthy operating rates in the downstream formaldehyde sector, according to distributers.
GNFC’s listed price for the product was currently at Rs15.40/kg, with a discount margin of around Rs1.00/kg, said the company source.
Other methanol producers in India include Deepak Fertilizers & Petrochemicals Corp and Rashtriya Chemicals and Fertilizers (RCF).
($1 = €0.72 / $1 = Rs44.37)
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