15 June 2012 11:30 [Source: ICIS news]
LONDON (ICIS)--Players negotiating the European third-quarter methanol contract are keen to see the outcome of Sunday’s Greek parliamentary election and the effect it will have on the euro valuation before settling a price, sources said on Friday.
Speaking at the sidelines of the International Methanol Producers and Consumers Association (IMPCA) meeting in Wiesbaden, Germany, players on both the buy and sell sides said events of the past few weeks, namely widespread energy and commodity price falls and growing concern over the fate of the eurozone, have already complicated the negotiation process.
They added that it is important to take the outcome of the election into account to get a clearer picture of the current economic situation.
“Everyone is waiting for Sunday. If one of the parties which are anti-euro wins, this could be very bad,” said a producer.
The fate of
Some buyers have already indicated that they anticipate lower consumption in the third quarter.
Conversely, a producer said on Friday that it has received third-quarter nominations from some of its customers, many of which have requested maximum contractual volumes and indicated they will likely require additional spot material.
The second-quarter methanol contract settled at €340/tonne ($430/tonne) FOB (free on board)
($1 = €0.79)
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