Methanex rolls N America August contract price

28 July 2008 18:16  [Source: ICIS news]

HOUSTON (ICIS news)--Global methanol producer Methanex rolled its North American July non-discounted reference price for August, the company said on Monday.

The Vancouver-based company’s August price at 158 cents/gal ($526/tonne, €337/tonne) shows no change from July or June. Contract prices have been stable since May, which were at 150 cents/gal ($499/tonne).

Methanex’ contract price rollover for August follows suit from Southern Chemical Corp (SCC). Last week, SCC posted its August contract price at 155 cents/gal, also showing no change from July or June.

With a weak US new house construction market, domestic demand for methanol has sputtered. Methanol is a key feedstock in formaldehyde production for wood and framing.

However, a plant outage at Atlantic Methanol’s Equatorial Guinea facility and increased demand from the biodiesel sector have continued to support and provide balance to the market, a US Gulf coast-based methanol trader said. Methanol is a component for biodiesel production.

“Biodiesel operating rates [are] picking up hence more demand for methanol coming from that sector,” the trader said.

Spot prices for methanol were at 139-144 cents/gal ($462-479/tonne) FOB (free on board) US Gulf Coast (USG), according to global chemical market intelligence service ICIS pricing.

($1 = €0.64)

For more on methanol visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Steven McGinn
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly