Methanex drops N America Feb methanol by 16%

22 January 2008 16:19  [Source: ICIS news]

HOUSTON (ICIS news)--Methanex has nominated a North American non-discounted reference price at $2.10/gal ($698/tonne or €482/tonne), 16% lower than January following a recent downtrend in US Gulf spot prices, the global methanol producer said on Tuesday.

Barge spot prices on 18 January were assessed at $1.65-1.75/gal FOB (free on board) US Gulf (USG), down 50 cents/gal - 23% - compared with four weeks earlier.

Traders cited a lack of buying interest in the spot market.

Many US end-users, such as windshield washer fluid manufacturers, were said to be limiting their truck and railcar purchases in anticipation of falling prices.

Southern Chemical (SCC), another leading marketer of methanol in North America, has yet to announce its February price nomination.

SCC lowered its posted non-discounted barge contract price in January to $2.55/gal FOB, down from a record-high $2.80/gal FOB in December.

($1 = €0.69)

By: David Barry
+1 713 525 2653

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