US June methanol expected to roll - buyers

19 May 2011 22:18  [Source: ICIS news]

Methanex plant in TrinidadHOUSTON (ICIS)--The market can expect a rollover in the US June methanol contract unless crude prices drop significantly, buyers said on Thursday.

The monthly contract range has been perched at 126-128 cents/gal for the past four months as energy prices have seesawed. Front-month natural gas futures have declined about 6% since early February, while crude futures have increased 7%.

Months of listless trading in the spot market have cooled the arguments of sources who often push for contract reductions based on energy prices. One buyer said a rollover was just a better bet right now.

“That’s my best guess,” a buyer said.

Spot prices currently range from 107-108 cents/gal.

Methanex and Southern Chemical Company (SCC) historically have set the monthly North American contract methanol range with their nominations.

NYMEX front-month crude futures closed at $98.44/bbl, down by 9% compared with $108.15/bbl a month ago.

Methanol prices, as with many petrochemicals, tend to track crude values over the long term.

($1 = €0.70)

For more on methanol visit ICIS chemical intelligence 

By: Lane Kelley
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles