US Southern Chem nominates August methanol down 2 cents/gal

28 July 2010 23:13  [Source: ICIS news]

HOUSTON (ICIS)--Southern Chemical (SCC) will decrease its monthly posted contract price for methanol by 2 cents/gal to $1.05/gal effective 1 August, the US company announced on Wednesday.

The July methanol range was assessed at $1.05-1.07/gal.

Participants expected August would roll over from July after a hike in spot values last week sent prices to 91-94 cents/gal, surprising traders and buyers.

Sources at Southern Chemical said the contract decrease was more reflective of current market conditions than the short uptick in the spot arena.

Methanol is a feedstock used in making formaldehyde, methyl tertiary butyl ether (MTBE) and acetic acid.

Canada’s Methanex and Houston-based Southern Chemical are the two major methanol suppliers to the US market, which imports about 77% of its methanol from Trinidad.

No price announcement was yet confirmed by Methanex.

($1 = €0.77)

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By: Judith Taylor
+1 713 525 2653

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