Europe spot methanol climbs, following €380/t Q4

12 October 2007 14:32  [Source: ICIS news]

LONDON (ICIS news)--Spot methanol prices have climbed by up to €45/tonne ($64/tonne) following the fourth-quarter contract price increase of 74%, sources said on Friday.

A trader was heard to be in the market to buy at €410/tonne and to sell at €460/tonne. A bid for November was pegged at €405/tonne by another buyer, with no offers to counter it.

Buying interest was quoted around €350/tonne FOB (free on board) Rotterdam earlier in the week.

“I wouldn’t be surprised if some higher spot numbers were done,” a supplier said.

The few players willing to propose spot prices were testing the water, according to another seller, following the late settlement of the fourth-quarter contract price.

“It’s all a bit academic,” he said.

The last reported deal was for October at €405/tonne, according to global chemical market intelligence service ICIS pricing. This pre-empted the new fourth-quarter contract price of €380/tonne settled between most major producers and consumers.

The fourth-quarter contract price was up from the third-quarter level €218/tonne, with buyers and sellers attributing the hike to a tight market.

Methanex set its European posted contract price (MEPCP) at €390/tonne.

($1 = €0.70)

By: Caroline Howard
+44 20 8652 3214

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