In USA, the prices of Methanol more likely to surge amid increasing crude and Natural Gas costs. In the starting week of Feb 2022, the prices of Methanol surged to $635/ton Ex-Works Louisiana with month-on-month increment of 2.75% as the prices of Methanol in January 2022 observed to be $618/ton Ex-Louisiana. Feedstock Natural Gas prices surged to USD 4.94 per MMBtu.

With tightness of Natural Gas in the market of USA and surge in demand in the chilling winter gave boost to the prices of Methanol. US total supply of Natural Gas rises week over week as a result of increased imports. The increase was driven by imports from Canada which increased 10% (0.7Bcf/d to 7 Bcf/d) which is highest since February 2021. This boost to the consumption of Natural gas accelerated the downstream of Methanol also including Acetic Acid and its derivative market. With the increase in price, the downstream adhesive and preservative industries had also been pressurized as limited supply and accelerating market impacts the enterprises. The inventories among the enterprises were observed to be low and the buyers are waiting for the prices to drop down to certain level.

According to ChemAnalyst, the prices of Methanol will likely to increase in United States with increase in feedstock Natural Gas prices. The imports of Natural Gas from South America and Canada are expected to increase with increase in its consumption in winter season. The demand for Methanol based fuel is also surging in US as it is eco-friendly and more compatible with will further give boost to the prices. Rising energy and natural Gas prices will thin the supply and increase the prices in domestic market of US.