US methanol spot prices push higher as production cuts limit regional supplies

HOUSTON (ICIS)–US spot methanol traded higher during the week as a more limited view of production in the region increased buying interest.

While there has not been any significant increase in consumption for US material, tightened production could help to offset some of the length that has suppressed the market for much of the year.

Spot prices were assessed at 71-73 cents/gal FOB (free on board), up from the previous week’s range of 64-69.5 cents/gal FOB.

Despite the higher prices, spot activity slowed during the week.

Since the four-year lows seen in the week ended 19 June, spot prices have increased by nearly 66%, according to ICIS price history. But prices remain well below the 2020 high hit in the week ended 28 February, when spot trades were seen at 94-104 cents/gal.

Methanol is primarily used to produce formaldehyde, methyl tertiary butyl ether (MTBE) and acetic acid. Smaller amounts go into production of dimethyl terephthalate (DMT), methyl methacrylate (MMA), chloromethanes, methylamines, glycol methyl ethers, and fuels applications such dimethyl ether (DME), biodiesel and the direct blending into gasoline.

Major US Methanol producers include Methanex, OCI, Celanese and LyondellBasell.

Thumbnail image shows a bottle of methanol. Photo by Shutterstock