Global Methanol Prices Show Bearish Trend With Ramping Inventories
- 23-Feb-2023 4:42 PM
- Journalist: Harold Finch
Hamburg, Germany - The Global Methanol prices inched lower this week due to adequate product availability and lower bids among the suppliers. In the European market, the spot outright prices were assessed to be on the lower side amid limited trading activities and a narrowing spread between Methanol and its derivative market.
In Germany, the market participant remains skeptical about increasing the Methanol prices due to lackluster demand and adequate cargo inflow from the Netherlands, resulting in stockpiles. However, Methanex, a major distributor and manufacturer of Methanol, had kept the contract price trend stable for this month.
In the Netherlands, product oversupply continues to dominate the market, and a bearish demand could not avoid some lower spot trades. The price of Methanol in the Netherlands with the week ending on 17th Feb slipped to USD 516/ton FD Rotterdam with a weekly decline of 1%.
US Gulf spot prices also followed a downward price correction as trading activities slumped and participants purchased cargoes on a need-to basis. At the International Methanol Producers and Consumers Association (IMPCA) conference taking place in Miami earlier this week, it can be concluded that there would not be that much trading activity with declining market trading fundamentals. Upstream coal futures also declined as a sign of sluggish demand offset by warm weather resulting in less consumption and oversupplies. With the week ending on 17th Feb, the price of Methanol in the USA declined to USD 570/ton Ex-Louisiana.
According to ChemAnalyst, the Methanol prices are expected to follow a weak trading fundamental with declining product demand from the downstream market. In Europe and the USA, the upstream coal market is anticipated to remain hampered by unprecedented mild weather. The inventory level is expected to remain sufficient to cope with the downstream demand. Methanol spot prices will also remain affected with no uptick in the trading discussions.