Iran’s Fanavaran sells 90% of July methanol; headed to China, India

The company offered 2 cargoes totalling 20,000-25,000 mt through a tender to two companies based in China. The parcels will certainly load very early July from Banda Imam Khomeini, for delivery very early August in China.

The resource declined to expose the price yet stated one freight was done on a set price basis as well as the other on a drifting basis. The business’s previous floating tenders have been based on the average of Platts and also ICIS methanol analyses, CFR.

Fanavaran likewise recently granted one more tender to an end-user in India for July-loading methanol, the source claimed decreasing to provide information.

Fanavaran will likely provide a 3rd tender for the remainder of its July-loading methanol later this month, the resource claimed.

Since May 1, EU-based insurance providers have actually not been allowed to supply insurance coverage cover for Iranian petrochemical deliveries to non-EU nations. Consequently, Iran producers are finding it hard to locate vessels to relocate item abroad, Platts has reported previously.

According to the resource at Fanavaran, freight for a vessel carrying methanol from Iran to China is around $90-105/ mt presently, while freight to India prices around $50-60/ mt. Prior to the permissions were enforced, the price of moving methanol from Iran to China was around $45-55/ mt and also it cost around $25-29/ mt to move product to India.

Fanavaran has a 1 million mt/year methanol plant in Bandar Imam Khomeini, which the resource said is currently operating at 90% of ability. There is no turnaround planned for the plant this year.

Aside from Fanavaran, Iran’s methanol plants make up a 660,000 mt/year plant on Kharg Island had by Kharg Petrochemical Company, and also two 1.7 million mt/year unit in Assaluyeh possessed by Zagros.