Global Methanol Market Witnesses Brisk Trading Activities Amid Improving Demand
- 02-Jan-2023 12:50 PM
- Journalist: Nicholas Seifield
The Methanol price in the global market witnessed a surge with recovering demand. Major Methanol producers continued strictly sticking to their supply management amid growing demand for the product from the downstream enterprises.
The European Methanol market has posted slight gains in the past few weeks, and suppliers were showing interest in bulk purchases. Traders reiterate that growing concern over Methanol and healthy demand from the downstream Formic Acid and Formaldehyde increase the production rate of ventures. Cost side and lower inventories supported Methanol offers. Many Methanol market players are upbeat about their outlook for 2023 and are expecting the demand to improve further.
Exports of Methanol from the Netherlands are also increasing gradually with revision in the price trend for the overseas suppliers. Rising product demand in the region with higher product bidding remains the primary factor for price increment. With the week ending on 30th Dec, the price of Methanol in the Netherlands surged to USD 476/ton FD Rotterdam.
In the USA, the price of Methanol surged with healthy demand and rising downstream fundamentals impacting the market fundamentals. Suppliers transporting cargo still face rising fuel costs and elevated shipping costs. With the approaching New Year's Eve, the bidding on Methanol increased, and producers looked forward to purchasing the product in bulk. In terms of the downstream market, Formic Acid and Formaldehyde market showcased a steep rise due to strong market fundamentals and the crippling availability of the product in the region.
According to ChemAnalyst, the price of Methanol in the global market will improve with the upcoming New Year’s Eve. The price trend of Methanol will surge as container shortage and recovering demand will provide support to trading activities. Also, with rising Covid cases across the globe, cargo import prices can follow a steep rise in price trends. However, European and American energy prices will remain a concern, disrupting global supply/demand dynamics.
