December US methanol jumps as Methanex posts 190 cents/gal

22 November 2013 17:29 Source:ICIS News

HOUSTON (ICIS)--Methanex posted 190 cents/gal for its December US methanol contract on Friday, setting the stage for another big jump in the monthly methanol figure.

Buyers expected an increase because of tight supply from low inventories stemming from harsh winter weather in the US northeast and continued natural gas cutbacks in Trinidad.

“It seems this market is very dry,” a buyer said.

Methanex and Southern Chemical (SCC) historically have set the monthly contract range with their postings.

Canada-based Methanex issued 180 cents/gal for November, while SCC issued 174 cents/gal. SCC has not posted its December figure yet.

The November contract shot up 15 cents/gal over October postings.

Methanex’s posting puts the monthly figure at a new five-year high. The monthly figure reached 190 cents/gal in March 2008, when both Methanex and SCC issued similar postings.

By Lane Kelley