The Argus European monthly methanol contract price (CP) for July is €525/t, higher by €10/t from June driven largely by recent price gains for feedstock natural gas.
A July contract was agreed this week between a producer and buyer at €525/t.
Europe is a net-short region for methanol, which means it relies on imports to meet its domestic demand. Regular inflows from the US and Trinidad and Tobago have filled some of the demand for non-Russian material since March.
But while European inventories are currently high, producers and consumers said this month a rise in gas prices could be a risk to operating rates and this could lower methanol import levels. US Henry Hub gas prices rose above $8/MnBtu in early June to some of the highest seen since cold weather price spikes in February 2021. In Europe the TTF month-1 contract exceeded $40/MnBtu last week. High European gas prices have contributed to one methanol producer being offline since the summer of 2021.
Supply chain costs have also increased in recent months, with the cost of freight to Europe high with rising bunker fuel prices. Several instances of limited vessel, railcar and truck availability have been a concern for some suppliers.
Methanol buyers in Europe have said accelerating rates of inflation are a risk to downstream demand, but several sources this month said near-term demand is stable.Send comments and request more information at firstname.lastname@example.org