London — European methanol prices have hit a three-month high amid logistical challenges and a dip in availability, triggering interest in the potential movement of methanol cargoes from Americas to Europe, sources said.
Spot methanol in Europe was last assessed at Eur380.50/mt ($444.7/mt) FOB Rotterdam, up Eur9.50/mt day on day, making Europe the highest-priced region globally. In the US, methanol loading in September was last assessed at $404.595/mt FOB USG.
"The arb from the US is open, but there have not been any fixtures yet," a trader said.
The European industry has been negotiating a new contract price for methanol deliveries in the fourth quarter. The Q3 contract price was settled at Eur419/mt. According to S&P Global Platts data, the industry-settled third-quarter European methanol contract price was the highest since the first quarter of 2014.
The spot market has been hovering at around a 9% discount to the Q3 contract price, significantly lower than has been typical for this year.
Meanwhile, Rhine water levels remained low, complicating logistics for the methanol trade.
However, while low Rhine levels in August were cited by many sources as a factor limiting market activity, spot market transactions have seen an uptick, despite water levels remaining low.
