N America methanol may fall roughly 5 cents/gal

01 October 2008 20:47  [Source: ICIS news]

HOUSTON (ICIS news)--North American methanol prices will likely fall by approximately 5 cents/gal following a similar decline in October contract pricing, market participants said on Wednesday.

“They’ll show a modest decline because of the slide in contract pricing,” a methanol distributor said.

North American contract prices, nominated by Southern Chemical and Methanex, for October were at 150.0-151.5 cents/gal FOB (free on board) USG (US Gulf), down from September prices of 155-158 cents/gal.

Falling demand amid a weakening new-house market has pushed spot prices down to 126-128 cents/gal FOB USG, according to global chemical market intelligence service ICIS pricing.

Sources said that due to plant shutdowns following hurricanes Ike and Gustav, there could be a slight inventory build in methanol around the US Gulf.

Methanol is a feedstock for several chemicals and is a vital component for formaldehyde and wood-resin production.

For more on methanol visit ICIS chemical intelligence
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By: Steven McGinn
+1 713 525 2653

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