15 May 2008 08:27 [Source: ICIS news]
SINGAPORE (ICIS news)--Greater difficulty in transporting product from northwest parts of China to the east and south in the aftermath of the earthquake in Sichuan province have added to pressures fuelling a methanol rally, buyers and sellers said on Thursday.
The industry already faced low methanol inventories in the coastal areas and shutdowns at some large methanol plants in ?xml:namespace>
Domestic prices have hit yuan (CNY) 4,100-4,200/tonne ($574-588/tonne) ex-tank in the east and south, said a seller.
Demand is very strong as buyers are trying to stock up material, a local methanol producer said.
'We are facing problems in transporting cargoes as railways and ships are being used by the government for disaster relief in
Methanol producers in northwest
Workable price ideas for imported cargoes were cited at $460-470/tonne CFR (cost and freight)
Meanwhile, talk of delays in some spot deals concluded earlier in the month were also supporting high prices.
"However, there is a fair amount of speculation in the market that is adding to the price spike", said a Chinese methanol distributor.
"For very prompt cargo I would be willing to pay $450-460/tonne CFR China but for June and July arrivals, this would be a big risk", he added.
Surging Chinese prices have also lifted regional price ideas in the spot market. Discussions in
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Sam Liang in
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