02 July 2010 20:09 [Source: ICIS news]
HOUSTON (ICIS news)--The US methanol contract for July was assessed on Friday at a rollover from the previous month's $1.05-$1.07/gal, in line with market expectations based on improving supply and seasonal demand.
The supply picture was propped up by the restart of the 1.7m tonne/year Atlas plant in Trinidad last month, which allowed spot prices to cool down from the spike in May triggered by the Atlas outage, market sources said.
That offset a modest seasonal increase in demand to leave the market outlook flat, as reflected in the spot price indications for forward months.
Canada's Methanex and Houston-based Southern Chemical, the two major suppliers to the US market, had left their July nominations unchanged from June at $1.05/gal and $1.07/gal, respectively.
The July contract range is around 15 cents gal above current spot market prices, consistent with the gap seen from October 2009 through March 2010.
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