25 July 2011 19:23 [Source: ICIS news]
HOUSTON (ICIS)--The US methanol spot barge price rose to a 2011 high on Monday, raising speculation over the direction of the August contract to be announced this week.
As spot prices hit 120 cents/gal (€0.22/litres) on Monday, buyers said that an increase was a possibility for the monthly contract, which has rolled over for six straight months at 126-128 cents/gal.
One buyer said the unplanned outage reported last week at the Atlas plant coupled with a move up in China methanol prices this month provided strong support for a hike in the August contract.
“Nothing’s going to happen in August and September,” the buyer said, “and then the prep for winter will begin.”
Methanol is a major ingredient in antifreeze and windshield wiper fluid, which see big sales increases in the winter.
Another buyer predicted a contract rollover, because crude prices have not climbed up above $100/bbl in July.
Crude prices have increased 7% this month. Methanol prices tend to track oil in the long term.
($1 = €0.70)
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