US methanol spot rises following large January contract jump

02 January 2018 18:00 Source:ICIS News

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.

By Lane Kelley