23 September 2011 17:01 [Source: ICIS news]
LONDON (ICIS)--The Europe methanol fourth-quarter contract price was confirmed on Friday at €315/tonne ($426/tonne), up €20/tonne, after support was received from the majority of market players.
Buyers widely accepted the price but support was less forthcoming from producers, with at least one major refusing to do so and continuing to target €340/tonne.
However, there was wide-ranging agreement that with the level of support reached, it would not be possible to get a different number on the table.
The initial agreement was made on 15 September between a buyer and two producers.
It was met with disapproval from buyers and sellers, not only at the price level, but also the nature of the announcement; namely the lack of consultation with other participants and the relatively small market share of the two producers involved.
Many players indicated they had withheld initial support to register their dissatisfaction with the situation.
“We expressed our discontent…it was early and we also didn’t understand the need to push through a deal without any support,” said one producer.
Canada-headquartered producer Methanex announced on Friday it will post its independent contract price at €320/tonne.
European methanol contracts are settled on a FOB (free on board) Rotterdam basis.
($1 = €0.74)
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.
|ICIS news FREE TRIAL|
|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|
Asian Chemical Connections