22 July 2011 04:12 [Source: ICIS news]
By Heng Hui and Ken Yin
A few more shipments can be expected to the ports of Indonesia and Vietnam in the coming weeks, with the window open for the first time in three years. For the major ports in southeast Asia, however, the arbitrage opportunity may have already disappeared this week, they added.
But methanol prices in other parts of
Spot methanol bids were heard on Friday morning at $370-380/tonne CFR (€259-266/tonne) (cost & freight) SE (southeast)
“We can ship to southeast Asia if there is a $25-35/tonne difference to cover freight and other logistical costs from
Chinese sellers have been shipping out methanol stocks from bonded warehouses, which are easier to re-export since import tax and other applicable charges on the material have not been paid, market sources said.
For domestic methanol producers in
Downstream formaldehyde operations in
In the formaldehyde sector, producers complained of restricted credit access adversely affecting construction projects, as the Chinese government is continuing with its monetary tightening policy to curb the continued spike in consumer prices.
Demand from downstream acetic acid production, meanwhile, is being hampered by turnarounds at domestic facilities, said traders.
Despite current weakness in the demand,
Traders expect an easing of tight supply conditions in
“Once the southeast Asian plants run normally or when the Middle Eastern plants come back on line, we will see better supply and we will no longer see these exports from
($1 = €0.70)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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