US methanol contract prices move lower on Methanex price

HOUSTON (ICIS)–US methanol contract prices for December were assessed weaker at 144 cents/gal after Southern Chemical Corporation (SCC) posted its monthly contract price on Monday.

SCC held steady at 145 cents/gal, while Methanex declined to 143 cents/gal, the company’s lowest price for the year. Methanex made its posting 20 November.

Methanex had increased its price to 150 cents/gal for November as spot prices were trading at around 130 cents/gal at the end of November.

Spot prices have weakened to a range of 118-120 cents/gal since then, widening the spread between contract and spot prices to 25 cents/gal, up from 20 cents/gal the previous month.

Additionally, some buyers have turned to China to help fill supply gaps left by ongoing heavy natural gas curtailments in Trinidad and Tobago.

China spot methanol was most recently assessed by ICIS at 97-98 cents/gal, with shipping rates at about $65/tonne.

A 10,000 tonne cargo of methanol from China is expected to arrive at the US Gulf Coast by the end of November.

Meanwhile, the natural gas curtailments in Trinidad can be as high as 35% and are expected to continue into December

A source said MHTL, which is based in Trinidad, has planned turnarounds and maintenance for its plants during the heavy curtailment period.

Production should be normal in January, when curtailments are expected to decrease to about 15%. SCC is the sales arm of MHTL.

US methanol producers include Air Products, Eastman Chemical, LyondellBasell, Millennium Petrochemicals, OCI North America and Praxair.

US Methanol spot prices cents/gal