Cory Mullins, TCC’s Methanol Product Manager, anticipates a price increase for Methanol in December. Multiple factors throughout the market bring the rise, including US spot pricing up 3.5 cents/gal over the past week, totaling an overall 8-9 cents surge in November.
A limited supply in Asia Pacific and renewed, growing demand in China are the primary drivers of rising prices. Methanex announced a 9.0 cents/gal increase in Asia, up to $1.30/gal, effective December 1. US spot barge prices were reported surging above $1.00/gal early last week.
While many companies traditionally plan on inventories thinning as the calendar year comes to a close, the looming threat of an increase in December and possibly January may lead purchasers to increase supply. Additionally, imports previously slated for Europe are making their way to the Asia Pacific.
For more information on methanol, or for pricing and availability information, contact product manager Cory Mullins for more information.