US spot methanol prices reached their highest level in four months Wednesday. Platts assessed methanol at $1.43/gal FOB US Gulf Wednesday. The last time methanol was any higher was on May 2 when it was assessed at $1.44/gal FOB US Gulf.
Spot prices have climbed gradually since August 20, when they were assessed at $1.37/gal FOB US Gulf. By August 27, prices had climbed to $1.39/gal FOB US Gulf before moving to $1.41/gal FOB US Gulf on August 30. On Wednesday, prices rose another 2 cents to $1.43/gal FOB US Gulf.
A number of factors have combined in recent weeks to create supply pressure, which was likely moved prices higher again on Wednesday, sources said.
An upcoming turnaround at Methanex's 850,000 mt/year Titan plant in Trinidad in September as well as 20-25% curtailments in gas supplies to the Point Lisas Industrial Complex in Trinidad -- home of a number of methanol facilities -- for 30 days beginning September 10 have raised the bullish tone in North America, sources said, with talk of a producer buying in the US market adding to that sentiment.
In addition, higher European prices and unrest in the Middle East were seen bolstering US prices, sources said.
