04 September 2008 14:48 [Source: ICIS news]
LONDON (ICIS news)--European methanol players are in agreement that steady market conditions and a common desire for a stable market will result in a rollover on the fourth-quarter contract price, market participants said on Thursday.?xml:namespace>
“It’s still too early to say but the best thing would be some stability. Negotiations won’t start before mid-September and I hope they will settle before EPCA [the European Petrochemical Association meeting in late September],” said one producer.
These sentiments were echoed by another supplier: “Quarter four will, I think, roll over if we see the same picture as today. It’s better to have some stability. Stability is good for everyone.”
Buyers too agreed that stable pricing was a probable outcome.
“We are waiting for the first indications from buyers. It is only a feeling but perhaps a rollover,” said one acetic acid producer.
“At present [spot] values it would be difficult to expect a price reduction,” said another consumer, adding that it had expected the spot market to trade lower given the new capacity that had come into the market.
The third-quarter contract price was agreed at €295/tonne ($428/tonne) FOB (free on board) ?xml:namespace>
European methanol producers include Mider Helm, SDO and BIOMCN.
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