US methanol spot prices drop to two-month low on ample supply

20 December 2012 22:29  [Source: ICIS news]

HOUSTON (ICIS)--US methanol spot barge prices dropped by 3 cents/gal to a two-month low this week as full production in Trinidad issaid to have discouraged buying, sources said on Thursday.

Traders and buyers said spot prices fell to 120-121 cents/gal, down by about 2.4% from a close at 123-124 cents/gal last week.

The last time US spot methanol prices were this low was in late October, when supply issues in both Trinidad and Egypt pushed them up to 127 cents/gal from about 118 cents/gal .

But production in Trinidad has found a smooth spot lately after planned and unplanned outages there stretched from September into November.

A source at the state-owned National Gas Company in Trinidad said on Thursday that there were no gas curtailments to methanol and other petrochemical producers and most likely would not be for the rest of the year and even into January.

“Everybody is doing well,” a buyer said. “Nobody needs barges now; it’s that time of year.”

($1 = €0.75)

By: Lane Kelley
+1 713 525 2653

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