27 March 2011 16:01 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--Buyers of methanol in Europe are confident of securing a price decrease in their second-quarter price negotiations following a surprise fall in the Methanex European Posted Contract Price (MEPCP), a major consumer said late on Saturday on the sidelines of the International Petrochemical Conference (IPC).
“Methanex took us by surprise. The timing did,” the source said referring to the posting of the MEPCP at €305/tonne ($430/tonne) in mid-March. The price represented a fall of €20/tonne from the company’s first-quarter posting.
Buyers generally believed that the move put them in a stronger position with one saying “€290/tonne should be the number”, while others were targeting a more modest decrease from the first-quarter price of €315/tonne.
Consumers further pointed to the impact of the Japan disaster on demand.
For their part producers generally targeted a rollover, noting that the chances of implementing a price increase were now slim following the Methanex announcement.
The European methanol contract is agreed on an FOB (free on board) Rotterdam basis.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
($1 = €0.71)
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