European methanol spot hits 6-month high on demand

London — European methanol spot prices reached levels not seen since March on Sept. 2, according to S&P Global Platts data, amid growing demand for September volumes.

The FOB Rotterdam hit a six-month high at Eur197/mt.

Around 11,000 mt of methanol were traded on Sept. 2, with deals done between Eur195/mt up to Eur197/mt.

Supply of methanol was healthy for contractual volumes, sources said, however adding that availability of spot was limited due to reduced run rates globally.

Methanol margins have been severely hit during the second quarter due to weak demand, leading to plants shut downs and lower operating rates.

In addition, planned maintenance in Russia -- Europe's largest supplier of methanol -- is still ongoing and will likely last until October.

Sources expected the upward trend to continue over the coming weeks, as the spot market is usually active ahead of the beginning of the negotiations for the quarterly contract price.

However, looking ahead, there was still uncertainty on the demand outlook, which currently remains below 2019 levels due to the pandemic.