19 December 2012 14:41 [Source: ICIS news]
LONDON (ICIS)--The European methanol contract price for the first quarter of 2013 has been agreed at €370/tonne ($487/tonne), an increase of €30/tonne, players involved in the settlement said on Wednesday.
An initial agreement was made on Tuesday involving a handful of key buyers and sellers. By Wednesday, some players were still discussing the price internally and could not confirm they would support it, yet they indicated that the price had received enough backing to make it confirmed.
Last week, a large number of market participants – buyers and sellers alike – said they considered around €370/tonne to be an acceptable price.
The increase takes the quarterly contract price to its highest level since the first quarter of 2008. However, there were few grievances from buyers, given the tight market conditions and high spot prices recorded throughout the current quarter.
“The buyers see that it has to increase, and I think €370/tonne is a good compromise,” said one supplier.
On Tuesday, Canada-headquartered producer Methanex, which posts its own independent quarterly contract price, also posted €370/tonne.
“It was based on broad support from our customers,” said a source from the company.
The methanol European contract price is settled on a FOB (free on board) Rotterdam basis.
($1 = €0.76)
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