Southern Chemical rolls over on US April methanol posted price

26 March 2012 18:16  [Source: ICIS news]

HOUSTON (ICIS)--The US April methanol contract appeared headed toward a rollover on Monday as Southern Chemical posted 133 cents/gal (€0.26/litre), the same as its March posting.

Methanex has not issued its number for April yet. In March, the producer posted 134 cents/gal.

Methanex and SCC historically have set the monthly North American contract methanol range with their monthly postings.

Methanol sources last week were largely in agreement that a rollover was coming, based on no major supply disruptions.

On Friday, sources said Trinidad’s M5000 methanol plant at Point Lisas would close for for about three weeks in early April.

 The turnaround was not expected to have a big impact on the global methanol market because of planning for it, with alternative supply arrangements in place, sources said.

The monthly posted price serves as a starting point in each company’s negotiations with customers who buy more than 1,000 tonnes monthly, according to market sources. Most contract methanol customers currently get discounts of around 15%.

The current spot price for US methanol is 113-114 cents/gal, according to market sources.

($1 = €0.75)

By: Lane Kelley
+1 713 525 2653

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