Reviving Purchasing Esteem Among Suppliers Surge the Global Methanol prices

Hamburg, Germany- This week, Methanol prices increased with acceleration in feedstock Natural Gas prices in Germany. Trading activities for Methanol have revived in the global market as the demand from the downstream ventures surged. In the European market, Natural gas prices remained on the higher end with a supply cut from Gazprom. While gas capacity sites filled gradually fast, concerns over how Europe will replace lost streams from Russia when it gets cold and demand rises will remain significant.

With the week ending on 2nd September, the prices of Methanol in Germany surged to USD 572/ton FD Hamburg with a weekly increment of 1.77%. Supply remains affected by rising feedstock Natural Gas prices in the region. German gas importer Uniper says it's also considering legal action against Gazprom to compensate its shareholders for a 90% drop in the company's market value following a sharp decline in Russian gas supply since June. Methanol inventories remain limited in the domestic market, and high purchasing esteem among the suppliers remains the critical factor for price increment.

In the USA, sharp price increases with the gradual surge in export volume and limited inventories affected the market fundamentals. The price dynamics remain concerned with a limited supply of Methanol in the regional market with fluctuations in feedstock Natural Gas prices. The producers were selling the Methanol at an elevated price due to the strong trading sentiments at the ports for overseas suppliers. Exports from the United States to the European and Asian regions remain healthy. However, logistics costs slowed due to vessel availability and delays in shipment at the ports. Suppliers have purchased the product in bulk for fear of further price increments in forthcoming weeks.

According to ChemAnalyst, the prices of Methanol will increase after the supply cut to 20% from Nord Steam 2 pipeline to the European region. However, in the USA, with Freeport LNG postponing its resumption of plant from mid-Oct to November, the LNG prices may reduce, impacting the Methanol market. If we focus on the downstream demand, global MTBE and Formaldehyde prices are accelerating with improving purchasing and market trading fundamentals from the consumer's end.