Argus launches US low-carbon methanol pricing

Argus Media today launched pricing instruments for the US low-carbon methanol sector.

11 May 2024

Argus assessed US low-carbon methanol at $990.7/t fob USGC this week, down by $10.05/t from last week amid softening global markets.

European bio-methanol prices slipped by $11/t to $1,080/t this week. The price had been as high as $1,100/t on 17 April.

The calculated cost of USGC low-carbon methanol production stood at $1464.7/t, down by $16.55/t from last week. Weaker RINs cost offset higher natural gas prices this week.

Low-carbon methanol is attracting widespread attention from multiple industrial sectors because it offers a decarbonization route both for the chemical industry’s traditional end-uses and for reducing the sulphur content and carbon footprint of shipping, where it can be used as a bunker fuel.

Rather than a specific bio-methanol, green methanol, blue methanol or an e-methanol price, the nomenclature of a comprehensive low-carbon methanol price was determined to be the best approach.

In discussions with market participants, feedback indicated an initial wide approach was necessary in the emerging USGC low-carbon methanol market space.

Developing technologies that are still in a nascent stage, if split, would segment the market and stifle price generation and transparency, said one trader. The all-encompassing approach allows the Argus US Low-Carbon Methanol price to develop as a standard price index.

“It’s the molecule that matters,” the trader said.

Moving forward, this would allow the price discovery process to progress as production volumes grow, and then, if necessary, adjust methodology to reflect the developing market.

Photo credit and source: Argus Media
Published: 14 May, 2024