Despite the scarcity of Natural Gas in the US, prices of Methanol this week deterred due to the weak downstream market.
- 17-Feb-2022 11:54 AM
- Journalist: Jacob Kutchner
In US, the prices of Methanol slipped to $630/ton FOB Louisiana with week-on-week declination of 1.6%. However, the price of feedstock Natural Gas was surged to $4.67 per MMBtu. The cost of Methanol was reduced due to its weak derivative market where the prices of Acetic acid demand was deterred affecting the prices of Ethyl Acetate, Formaldehyde and MTBE market. In US, the price of Acetic acid slipped to $1409/ton FOB Louisiana and $1390/ton FOB Texas.
At the Algonquin Citygate, trading centre and the benchmark at the Natural gas cost in New England, averaged $20.55 per million British thermal units (MMBtu) during January 2022-the most elevated month to month average price since February 2014-and surpassed $28/MMBtu on a several days as a part of pattern of price spikes this winter. On the other hand, Methanol prices reduced due to slashing demand. Local producers had reduced the prices due to feeble demand and moderately operating downstream enterprises. However, the export of Methanol to US remained firm as the dispute of Gazprom to European regions creates pressure to fulfil the demand in the regional market of US. Downstream Acetic Acid market of US slowed down with deteriorating demand of metal acetates.
According to ChemAnalyst, the prices of Methanol in the regional market of US will increase with strong demand and healthy trading activities. The export of feedstock Natural Gas to European Nations will further increase which will eventually supply/demand gap equilibrium and will fluctuate the prices. Downstream Acetic acid and Formaldehyde market will also increase with low inventories among the enterprises. Strong Methanol demand coupled with industries supply challenge will drive the market of US in the upcoming weeks.