22 November 2013 17:29 [Source: ICIS news]
LONDON (ICIS)--A higher European methanol contract price for the first quarter of 2014 would be possible only if the move was made to increase parity with other global regions, a consumer said on Friday.
With net European contract prices having been higher than prices in Asia for much of the year, one of consumers’ primary arguments against increasing previous quarterly contract prices had been that this price gap should not rise.
Consumers that export their derivatives said they were having difficulty competing with Asian companies that had access to cheaper feedstock methanol.
However, Asian CFR (cost and freight) prices to many countries have now increased to the extent that they are higher than, or similar to, net European contract prices.
The consumer said any increase that re-established the regional price spread would not be acceptable. However, it said if the price was adjusted in order to increase consistency between regions, then this could, at least, be discussed.
“It’s important to keep parity [between regions],” the consumer said.
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