23 September 2008 18:11 [Source: ICIS news]
(Updates, adds detail throughout)
LONDON (ICIS news)--Methanex rolled over its fourth-quarter Methanex European Posted Contract Price (MEPCP) at €295/tonne ($434/tonne) with two of its customers, a company source said on Tuesday.
“Most of the market was aligned for that number,” Philippe Arendt, director of marketing and logistics at the Canadian producer said.
Methanex based its decision to keep the price stable on energy values edging down, increased strength of the US dollar and recent developments in ?xml:namespace>
“Demand is not as high as anticipated,” Arendt said, speaking about the situation in
A buying source at Taminco, which agreed the price with Methanex, said: “We actively gave support to the MEPCP. This is a fair representation and a fair reflection of supply and demand as I have experienced it in terms of sourcing our extra needs."
The source also echoed concerns voiced by parties involved in the earlier European contract settlement that any widening of the gap between prices in Europe and the US could lead to product flowing out of Europe.
Not all participants were happy with a rollover, and some said they would try to fight the agreements.
“We wanted to have €280/tonne...€10-15/tonne is a lot of money for our 200,000 tonnes in
“This price will be valid for a quarter. We see our demand coming down and we think we are not the only ones who see demand falling...We will see the spot coming down,” he added.
The MEPCP was done on an FOB (free on board) Rotterdam basis.
($1 = €0.68)
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