Initial Europe Q1 methanol agreed up by €38/tonne

16 December 2010 16:26  [Source: ICIS news]

LONDON (ICIS)--A buyer and two sellers have agreed an initial European first-quarter methanol contract price at €315/tonne ($414/tonne), up €38/tonne from the previous quarter, the buyer said on Thursday.

“It’s a compromise. It was important to settle before the Christmas holidays. Now that the uncertainty is away we can plan the numbers and quantities for next year, which is important,” the buyer said.

“Over the last few weeks, the spot price has softened, so I think this price is reasonable,” the buyer added.

Confirmation from other market players was pending.  

A producer that was not involved in the initial agreement indicated it was likely to follow the price, but that it needed to speak with its customers first.

“I think there will be a broad acceptance,” the producer said.

The contract was agreed on a free on board (FOB) Rotterdam basis.

($1 = €0.76)

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By: Ross Yeo
+44 208 652 3214

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