US spot methanol prices climbed to their highest level in nearly a year, with production issues weighing on the market.
US methanol was assessed Monday at 81.75-82.25 cents/gal FOB USG, up 3 cents day on day and at the highest level since reaching 82.50 cents/gal FOB USG November 18, according to S&P Global Platts data.
Firmer US pricing has come with recent data from large methanol producer Trinidad and Tobago showing considerable declines in methanol production levels and feedstock natural gas output.
Trinidad and Tobago produced 351,000 mt of methanol in August, the lowest total in 2016 or 2015, according to the most recent data from the country's Ministry of Energy and Energy Industries.
August exports of 366,500 mt were the second lowest in 2016, exceeding only 345,500 mt in January. Trinidad and Tobago represents the largest source of imported methanol into the US.
August's methanol production in Trinidad and Tobago slid 24.5% year on year from 465,000 mt in August 2015, while exports dropped 32.6% year on year from 545,000 mt in August 2015, the data showed.
Additionally, the 1.3 million mt/year Celanese/Mitsui plant in Clear Lake, Texas, encountered an operational issue in late September that was expected to last at least a week, according to a filing at the time.
Supply concerns appear to be a primary concern for the fourth quarter, a distributor said Monday.
Chinese spot prices also hit an 11-month high Monday, jumping $4 to $245/mt CFR China, the highest level since November 17, Platts data showed.
Chinese and Asian spot pricing likewise has been affected by a number of production concerns.
