Methanex to post Q2 methanol price at €305/tonne, down €20/tonne

17 March 2011 16:57  [Source: ICIS news]

LONDON (ICIS)--Canadian producer Methanex will post its independent European methanol second quarter contract price on Friday at €305/tonne ($424/tonne) FOB (free on board) Rotterdam, a decrease of €20/tonne from its first quarter price, a source with the company said on Thursday.

The agreement was made with six consumers, three of which confirmed immediately. Confirmation from the remaining buyers is pending.

The source said the volumes contracted with the consumers were equivalent to approximately 2m tonnes/year.

Methanex posts its quarterly prices independently of the rest of the market. Although the prices are usually similar, Methanex posted €325/tonne for its European methanol first quarter contract price in 2011, compared with the market consensus of €315/tonne.

Although the company predicts European demand to increase in the second quarter by 4%, it also intends to bring online additional production capacity totalling 1.77m tonnes/year - a new 1.3m tonne/year plant at Damietta, Egypt and the 470,000 plant at Medicine Hat, Alberta, Canada, which was shut in 2001 because of high feedstock natural gas prices.

($1 = €0.72)

By: Ross Yeo
+44 208 652 3214

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