Indonesian methanol producer Kaltim has slashed the operating rate of methanol production as the weak market fundamental has crushed margins. It has not scheduled any timeline to ramp-up production again.
Kaltim’s 600,000 tpa Bontang unit’s production rate was lowered to 80% as methanol prices cfr Southeast Asia have slumped to around USD165-175/t. The weaker fundamentals in the region due to the coronavirus pandemic also pushed the company to the decision.
Methanol sales from most producers and sellers in SEA was slaughtered by the sharp drop in demand. Indonesia’s domestic demand is no different.
Kaltim is Indonesia’s sole methanol producer which sells a large part of its production to the domestic.
