29 August 2012 21:17 [Source: ICIS news]
HOUSTON (ICIS)--The US September methanol contract headed for a rollover on Wednesday as Methanex issued its monthly posting at 132 cents/gal, a repeat of its August number.
Southern Chemical Corp (SCC) has not yet issued its posting for September. In August, SCC posted 130 cents/gal. SCC and Methanex historically have set the range in monthly contracts for US methanol.
Spot prices have moved 3% higher in the past month, largely on supply issues in Trinidad, sources said. Methanol Holdings (Trinidad) Limited (MHTL) has scheduled a combined 25 days of maintenance on two methanol plants in September.
Another damper on supply is the coming natural gas curtailment in Trinidad set to begin in September, when gas deliveries will be cut back by as much as 30% during the month, according to the government-owned National Gas Co (NGC).
Anticipation of the curtailment and the MHTL turnarounds has pushed the methanol spot barge price up 3% in the past month, currently around 111 cents/gal. That compares with an average price of 108 cents/gal at the end of July, according to ICIS.
One source said a deal had been done at 111.50 cents/gal, but it could not be confirmed. Another source said that price represented an offer, and that no deal was done at that price.
The current gap between methanol spot barge prices and the monthly contract postings comes close to the average gap between the two in the past year.
($1 = €0.80)
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