US spot methanol prices are at their highest point since June 2008, according to Platts data, thanks to ongoing supply pressure and concerns the situation could continue beyond October, market sources said.
The spot price for US Gulf Coast methanol was assessed Wednesday at $1.2525/gal FOB USG, its highest since June 26, 2008, when it was assessed at $1.2550/gal FOB USG, according to Platts data.
Spot prices have risen 17% since August 6, when they were assessed at $1.07/gal FOB USG.
Methanol supply is under pressure due to government-ordered natural gas curtailments in Trinidad, the market's key supplier, leading to turnarounds at major methanol production facilities, sources said.
The curtailments began in September and concerns that they could continue beyond October -- further tightening supply -- are contributing to the climbing prices, sources said.
Methanex's 1.8 million mt/year Atlas facility in Trinidad was scheduled to undergo a turnaround during the month of October, sources said. The exact timeline for the turnaround was unknown. The Methanex turnaround comes after back-to-back turnarounds at two of Methanol Holdings Trinidad Ltd.'s facilities -- its 480,000 mt/year M1 facility and its 1.9 million mt/yr M5000 facility -- during the month of September.
In addition, a major producer has been heard short-covering in the market during the last three weeks, sources said.
Increased seasonal demand is also working to drive up prices, sources said.
