23 September 2011 19:25 [Source: ICIS news]
HOUSTON (ICIS)--Methanol sources expect contract prices to stay the same in October, sources said on Friday.
Major producers usually post their numbers in the last week of the month but have yet to issue announcements. Sources said they expected a rollover of the 137–138 cent/gal monthly range for September.
Consumers generally want lower prices and would seem to find support from so many markets taking big dives this week.
But a large buyer noted some offsetting factors, including the continuing natural gas curtailment in Trinidad. Fourth-quarter European methanol contracts also rose €20/tonne this week ($426/tonne, €315/tonne).
“I’m sorry to say they have all the right reasons to let it roll,” a large buyer said.
Methanex and Southern Chemical historically have set the monthly contract range with their prices.
Prices for West Texas Intermediate crude oil have dropped more than $7/bbl in the past week, marking a 10% fall-off for the month of September. Natural gas prices have declined almost 6% in the past month.
Spot ranges tightened, ending the week at 118.5–119.5 cents/gal. Sources confirmed only one trade, a barge purchased on Thursday at 118.5 for October delivery.
($1 = €0.74)
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