The US spot methanol assessment reached the highest level in more than five years Tuesday, assessed at $1.67/gal FOB US Gulf, with prices soaring 4 cents from Monday's assessment.
Prices have remained at or near the highest levels in over five years since the middle of October, with global supply pressure providing support for the higher prices.
Tuesday's assessment was the highest since February 19, 2008, when Platts assessed the price at $1.765/gal FOB US Gulf.
Spot prices have remained high through much of 2013 as a result of continued tight supply in the region, sources said.
A number of factors have contributed to the high prices, including planned and unplanned maintenance at a number of methanol production facilities during September and October, feedstock curtailments in Trinidad and the Brazilian government's decision to extend the suspension of import duties on methanol for 180 days beginning October 4 in an attempt to alleviate a shortage of material to the country.
The gulf between December contract prices and current spot prices could also be contributing to the climbing prices, a source said. The December contract from Southern Chemical Corp. increased 12 cents from November to $1.86/gal FOB US Gulf, while the December contract from Methanex increased 10 cents from November to $1.90/gal FOB US Gulf.
Prices have been high in all regions, with the CFR China assessment at $490/mt and FOB Rotterdam at Eur390/mt ($528.68/mt).
The US has been the most expensive region for purchasing methanol since November 7, according to Platts data. Tuesday's US methanol assessment is equivalent to $556.11/mt FOB US Gulf.
US methanol prices have remained at relatively high levels through 2013, with Tuesday's assessment at $1.67/gal FOB US Gulf up 40 cents/gal from the November 26, 2012, assessment of $1.27/gal FOB US Gulf.
