24 July 2013 21:22 [Source: ICIS news]
HOUSTON (ICIS)--US methanol watchers on Wednesday seemed divided on expectations for August contract prices, which should be posted soon.
Those predicting a rollover of July’s 160-162 cents/gal postings say the market has sunk into the summer doldrums, reflected by stagnant methanol spot barge prices.
But a few sources cite the lower range this week as reason for a drop in the August contract.
“You can’t roll it and keep spot pricing so low,” a source said.
The spot range has dipped slightly this week, to 138-139 cents/gal from 140-141 cents/gal on 19 July.
Yet spot prices remain within a tight 4 cent/gal range that has been in place since late May, the narrowest range for June and July in the past four years.
Traders said this week’s slippage is due to lower bids and offers, because no trades have been done.
Methanex and Southern Chemical Corp (SCC) have historically set the monthly contract range with their postings. Neither company has posted its August price yet.
($1 = €0.76)
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