Methanol shortage ignites US spot market

27 August 2007 20:50  [Source: ICIS news]

HOUSTON (ICIS news)--US Gulf spot methanol bid/offers for September barges were talked higher at 125-150 cents/gal ($416-499/tonne) FOB (free on board) on the back of product shortages, traders said on Monday.

Sources mentioned some offers as high as 200 cents/gal FOB.

A Lyondell force majeure on methanol, coupled with recent production issues in Venezuela and Chile, was driving spot prices upward, sources said.

No actual business was confirmed so far on Monday, but the bid/offer range is well above a reported September spot deal at 114 cents/gal FOB on 23 August.

A trader also said a barge amount had been sold at 93 cents/gal FOB last week.

Market participants said the Lyondell plant in LaPorte, Texas, had been restarted since being shut down by flooding more than a week ago. However, sources at the company declined to comment on operating issues.
By: David Barry
+1 713 525 2653

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