11 October 2010 22:51 [Source: ICIS news]
HOUSTON (ICIS)--US Gulf spot methanol prices jumped for a second consecutive week by an average of 4 cents/gal ($13/tonne, €9/tonne) amid supply issues and talk of increasing demand in the upcoming US winter season, sources said on Monday.
Most market sources confirmed the new spot range at 104-107 cents/gal. One source said US Gulf prices ranged from 101-105 cents/gal, and that it could move higher if spot prices stayed above 100 cents/gal.
A deal reported on Friday showed two 10,000 bbl trades in November, with a sale at 104 cents/gal and a purchase at 103 cents/gal.
A jump in the spot price last week - also by 4 cents/gal - came amid talk of tighter supply because of scheduled turnarounds in October at plants in Trinidad and Venezuela.
On Monday, methanol participants focused on pricing, with one source calling US prices too low compared with Europe and Asia, adding that the market was adjusting.
Market talk also centred on demand improvements in oilfield drilling and windshield wiper fluids, in which methanol is a key ingredient.
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