04 December 2009 17:48 [Source: ICIS news]
LONDON (ICIS news)--The European first-quarter contract price for methanol could increase by €10-15/tonne ($15-23/tonne) in light of the current strength seen across Asian markets, sources said on Friday.
Last week, most market sources said they thought the contract would settle at a rollover from the fourth-quarter price of €223/tonne, based on spot prices and stable fundamentals.
However, the recent strengthening of Asian prices has led several sources to adjust their predictions and consider a rollover to be the minimum price settlement.
“Asian prices are on the up, which could justify an increase [in the European contract price],” a buyer said.
Sources also pointed to slightly firmer European spot prices this week as further justification of a mild contract price increase.
The Asian markets were expected to increase their draw on global supplies, particularly those from the ?xml:namespace>
Reduced availability, combined with the currently strong spot prices and unusually healthy demand for December, could possibly result in an increase the first-quarter contract price, sources said.
($1 = €0.66)
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