26 October 2012 19:09 [Source: ICIS news]
HOUSTON (ICIS)--US November methanol contracts jumped to $1.45-1.48/gal, the highest contract range since late 2008, with a posting by Southern Chemical Corp (SCC) on Friday.
The increase follows a recent buying surge on the spot market in response to supply issues in Trinidad and Egypt. Most sources expected the boost, in order to maintain the margin between contract and spot prices.
SCC pushed the range higher with its posting of $1.48/gal, up from $1.33/gal in October. SCC posted $1.515/gal during October 2008.
The contract increase, averaging 14 cents/gal, follows a jump in spot prices of nearly that much since early October, when spot methanol averaged $1.1425/gal.
On Friday, spot methanol traded at $1.27-1.28/gal, sources said.
In its earnings report this week, Methanex attributed the recent jump in spot prices to steady demand and supply outages. Methanol production usually gets a boost in late fall and early winter from sales of windshield wiper fluid, which uses methanol.
($1 = €0.77)
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