US methanol spot rises following large January contract jump

HOUSTON (ICIS)–US methanol spot prices moved higher on Tuesday following a recent jump in January contracts.

A methanol source said methanol railcar loads have been offered at 125 cents/gal in Houston, which is a little higher than the most recent spot price of 123 cents/gal.

The spot move up follows January contract postings last week by Methanex and Southern Chemical Corp (SCC) for individual increases of 20 cents/gal.

SCC posted at 142 cents/gal and Methanex at 144 cents/gal, marking the largest January contract move in nine years. The two companies typically set the monthly contract range with their individual postings. Their December contract postings were 122-124 cents/gal.

Methanol spot prices have been rising steadily for the past month, following rising values globally and also on talk of upcoming plant turnarounds in the first quarter of next year.