28 September 2010 17:28 [Source: ICIS news]
HOUSTON (ICIS)--The US methanol contract for October may be heading for a rollover from September's $1.05-1.08/gal as spot prices have found a ceiling, sources said on Tuesday.
Spot prices have inched up over the past week, bottoming out at 94 cents/gal and touching 98 cents/gal on Monday.
Sources attributed the gradual move up in the spot market to slightly tighter supply expected in October from scheduled turnarounds at two methanol plants, one in Trinidad and the other in Venezuela.
Major producer Methanex nominated $1.08/gal for its October contracts, steady with September.
The other major methanol supplier, Southern Chemical Corp (SCC), had yet to issue its October nomination after issuing $1.05 for September.
Methanex and SCC historically have set the range of the monthly contract.
A buyer said the current spot range of 97-98 cents/gal would make it reasonable for SCC to match Methanex's nomination. Market sources last week said that an October contract range of $1.08-$1.10/gal made sense, based on spot prices.
Methanol Holdings (Trinidad) Limited (MHTL) rescheduled a planned turnaround at its M5000 methanol unit in Trinidad to the first half of October, market sources said earlier this month.
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