06 October 2013 11:18 [Source: ICIS news]
BERLIN (ICIS)--Contractual discounts in the European methanol market could decrease in 2014, a consumer said on the sidelines of the 47th European Petrochemical Association (EPCA) meeting on Sunday.
Discounts are confidentially agreed between sellers and buyers, but both buyers and sellers have said that the average discount has increased in recent years.
It is also understood that the net contract price has been lower than spot prices for most of 2013.
With consumers taking almost all their supply through contracts, it is suppliers who face higher costs in the spot market, from which they often supplement their own supply chains.
Because of this, a number a suppliers have indicated they will seek to reduce the size of discounts agreed with their customers next year.
The consumer said it expects its supplier to try to negotiate lower discounts, saying: “We probably won’t get the same discount as in 2010.”
The annual EPCA meeting runs from 5-9 October.
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