Tight methanol supply pushes prices up in Europe

17 August 2007 12:10  [Source: ICIS news]

LONDON (ICIS news)--Methanol spot prices are rising in Europe as supply tightens in the region, industry buyers and sellers said on Friday.


A spot trade was reported this week at €215/tonne ($289/tonne) FOB (free on board) Rotterdam, up €7/tonne from the last deal done the previous week.


Bids for prompt material now stood at €215/tonne FOB Rotterdam, and sellers suggested that some higher business may have been conducted through the week, though details could not be confirmed.


Consumers and producers agreed that numbers looked set to climb further, due to a shortage of material on offer for August.


One broker speculated that this was a temporary situation, caused by the delay of some vessels to their destination, and the market should see some relief by early September.


However, planned outages at several units next month should keep the supply situation snug, sellers said, and any unexpected production issues could send prices soaring.


European methanol producers include Statoil, Shell and Biomethanol Chemie Nederlands (BMCN).


($1 = €0.75)

By: Nicolette Allen
+44 20 8652 3214

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