US July methanol contract postings drop for fourth straight month

26 June 2014 17:13 Source:ICIS News

HOUSTON (ICIS)--US July methanol contracts fell by an average of 12.5 cents gal on Thursday as Methanex and Southern Chemical (SCC) issued their postings, marking the fourth straight drop in monthly prices.

Methanex issued 145 cents/gal and SCC 140 cents/gal. The two suppliers historically have set the monthly contract range with their postings.

Monthly US methanol contract postings, in cents/gal


Methanex

SCC

Jan-14

190

188

Feb-14

190

188

Mar-14

190

191

Apr-14

180

180

May-14

170

170

June-14

160

150

July-14

145

140

Source: Methanex, Southern Chemical

US contract prices have dropped 25% since March, because of an influx of Asian imports stemming from plants in the Middle East and southeast Asia that restarted in February.

Methanol watchers expected another monthly drop because of the still-wide spot-contract spread, a difference of more than 30 cents/gal between July postings and the current spot price around 109 cents/gal.

US methanol suppliers include Methanex, SCC, OCI and LyondellBasell.

By Lane Kelley