SCC rollover lowers US Jan methanol range to 129-135 cents/gal

23 December 2010 17:49  [Source: ICIS news]

HOUSTON (ICIS)--Southern Chemical (SCC) rolled its monthly methanol contract nomination on Thursday, setting the January range at 129-135 cents/gal, down by 1.5 cents/gal from December.

The January 2011 range marks a 21% increase over the January 2010 range of 108-110 cents/gal. Crude oil prices, which are a major influence on methanol, have increased 14% so far this year.

Methanex's reduction earlier this week to 135 cents/gal from 138 cents/gal in December effectively lowered the January range.

The Canadian-based producer and SCC historically have set the monthly North American contract methanol range with their nominations.

The slippage in the contract range came amid lower US methanol spot prices over the past six weeks, with the current low of 105 cents/gal down 13% from the yearly spot peak of 120 cents/gal in mid-November.

Spot methanol this year has increased 12%, from an average of 96 cents/gal in January 2010 to an average of 107.5 cents/gal on Thursday.

($1 = €0.76)

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By: Lane Kelley
+1 713 525 2653

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