28 August 2009 16:59 [Source: ICIS news]
LONDON (ICIS news)--The European fourth-quarter methanol contract price will rise substantially as a result of higher spot values, tight supply and better-than-expected demand, market sources said on Friday.
Estimates on the fourth-quarter price were at €180-250/tonne ($257-357/tonne), with most pitching their expectations around €200/tonne. The third-quarter price was agreed at €163/tonne FOB (free on board) Rotterdam, according to global chemical market intelligence service ICIS pricing.
“Spot is already around €200/tonne and it will probably go higher because the market is still tight and I think that will last until at least November. I think it could land near €250/tonne,” said a European trader.
Buyers agreed that a significant price hike was inevitable, but thought €250/tonne was optimistic on the part of sellers, adding that while demand had improved from earlier in the year, it was still way below typical levels.
($1 = €0.70)
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