29 September 2009 16:48 [Source: ICIS news]
LONDON (ICIS news)--An initial fourth-quarter European contract price for methanol has been agreed at €223/tonne ($328/tonne), up €60/tonne from the third quarter, sources involved in the deal said on Tuesday.
The initial settlement was reached between a large major consumer and several producers, according to the consumer involved.
“We were in negotiations close to this number. After the posted price in the ?xml:namespace>
A second producer said it would follow the number, adding that while it had hoped to achieve a higher price, recent developments in the spot market and the US market meant that €223/tonne was a reasonable price.
The view was echoed by yet another producer, while two further sellers said that they would wait before confirming the number with their clients.
Producers had been hoping for a settlement closer to €250/tonne, given European spot prices in the €240s/tonne earlier in September. But improved availability prompted a decline in spot values, with deals concluded this week in the €220s/tonne.
In the US, October contract prices were posted at 93 cents/gallon and 95 cents/gallon, an equivalent of €211/tonne and €215/tonne, respectively.
The third-quarter European contract price was agreed at €163/tonne FOB (free on board)
($1 = €0.68)
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