India importers wary of possible spike in Iran methanol prices
Fahima Khail
13-Jan-2014
By Fahima Khail
SINGAPORE
(ICIS)–Indian methanol importers are wary of a possible
spike in prices of Iranian material with the lifting of some
international sanctions starting 20 January, market sources
said on Monday.
On Sunday, Iran reached an agreement with six world powers
that the six-month interim nuclear accord reached in November
2013 will be implemented this month.
The deal will effectively curb Iran’s uranium-enriching
activities in exchange for relief from international
sanctions imposed on the Middle Eastern country. Sanctions
were imposed on Iran on suspicions that it is developing
nuclear weapons.
The lifting of some sanctions will likely open up more export
markets for Iranian petrochemicals, including methanol.
Iranian methanol may flow to other countries in Asia,
particularly in the southeastern region where supply is
currently tight, Indian players said.
“If the [methanol] plants in Southeast Asia remain shut and
demand increases in China after the Lunar New Year, India
might see price increases [for Iranian methanol],” an Indian
importer said.
Import prices in India have been on the uptrend in recent
months on the back of tighter supply. On 10 January the
import price to India was at $540-570/tonne CFR (cost and
freight) India.
“Right now the situation is not clear as several Iranian
plants are shut or on reduced output because of feedstock gas
shortages in the region, but we will be following the
situation closely,” the importer said.
The nuclear deal that Iran struck with major world powers in
November last year raised hopes among the methanol producers
in the country that it will allow them to diversify their
supply chain and offer material to more countries in Europe,
as well as in other parts of Asia.
Buyers in countries such as Taiwan or South Korea were
optimistic that increased availability of methanol, with
supply coming from Iran, would lead to lower prices in
northeast Asia.
On 10 January, import prices in northeast Asia were at
$530-560/tonne CFR Korea, $510-530/tonne CFR Taiwan,
$430-520/tonne CFR China.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.