Europe’s methanol players expect Q4 rollover

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.

 

“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) Rotterdam, although discounts are typically applied.

 

European methanol producers include Mider Helm, SDO and BIOMCN.

 

For more on methanol visit ICIS chemical intelligence

To discuss issues facing the chemicals industry visit ICIS connect  

 

($1 = €0.69)

By: Shelley Kerr
+44 20 8652 3214

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