19 March 2013 12:05 [Source: ICIS news]
“We had broad support from our customers, so we decided to post at this price,” a source with the company said on Tuesday.
Negotiations are still ongoing for the European contract price, which is reached by consensus between other major market players, and from which Methanex’s prices are independent.
Some other European producers are targeting higher prices up to €410/tonne.
The Methanex source acknowledged the company’s price is at the low end of producers’ offers, and explained that the moderate increase was an effort to “try to deliver some stability” to the market.
The source also said there was uncertainty over demand from the firm’s customers, and that it was important these buyers felt their views were being taken into account.
The European contract price is agreed on an FOB (free on board) Rotterdam basis.
($1 = €0.77)
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