Methanol prices rise 20¢/gallon19 Nov 2009 • by Natalie Aster
The market price for methanol has increased by 20¢/gallon-from 80¢ in October to an average $1 this week-according to the Purchasing.com monthly survey of chemical buyers and a market review by ICISpricing.com. Reason: Tight supply and heightened demand were primary reasons for the uptick, according to market sources.
Analysts say the recent methanol price increase appears to be due to supply tightness caused by arrival delays from such offshore supply sites as Venezuela, a seasonal demand pickup from solvent makers and slower-than-expected expansions of supply capacity in the Middle East. Asian markets outside China have reported that methanol spot prices are "stable to soft on weak demand," ICISpricing.com reports.
But, in China, it's another story. CMAI.com estimates that China will likely consume 2.7 million metric tons of methanol this year, about 5% of global demand, which also is tightening world supply. A TD Bank analysis says that China's methanol demand continues to be strengthened by use in gasoline blending and alternative energy applications.
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