Southern Chemical rolls again with US May methanol posted price

26 April 2012 16:33  [Source: ICIS news]

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

Methanex has not announced the May price yet. In April, the producer issued 134 cents/gal.

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

Most methanol sources this week agreed that a rollover was coming because of no major supply disruptions. But a few sources said they worried that rising spot barge prices might prompt an increase.

The current spot price for US methanol is 119-120 cents/gal, according to market sources.

Methanol industry veterans say that the monthly posted price serves as a starting point in each company’s negotiations with customers who buy more than 1,000 tonnes monthly. Most contract methanol customers currently get discounts of around 15%.

($1 = €0.76)

By: Lane Kelley
+1 713 525 2653

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