US methanol August contracts slip 1.5 cents/gal

29 July 2014 17:26 Source:ICIS News

US methanol August contracts slip 1.5 cents/gal on SCC postingHOUSTON (ICIS)--US methanol August contracts slipped 1.5 cents/gal with the posting by Southern Chemical Corp (SCC) on Tuesday of 137 cents/gal.

Methanex rolled its July posting of 145 cents/gal on Monday. SCC posted 140 cents gal for July.

August marks the fifth straight monthly drop. The average methanol contract price has fallen 25% this year on an influx of Asian imports to the US because plants in the Middle East and southeast Asia came back on line in the first quarter.

Methanol observers were split on the outlook for the contracts. Buyers wanted another drop while sellers said a rollover seemed likely because the gap between spot and contract prices has begun to close.

Spot prices have climbed in the past few weeks from a yearly low of 107.5 cents/gal to around 115 cents/gal now, with the range for August delivery at 114-116 cents/gal.

Methanex and SCC historically have set the monthly contract range with their postings. Other major US methanol producers now include OCI Partners and LyondellBasell.

US methanol posted monthly prices, in cents/gal

  Month

Methanex

Southern Chem

Jan 2014

190

188

Feb 2014

190

188

Mar 2014

190

191

April 2014

180

180

May 2014

170

170

June 2014

160

150

July 2014

145

140

Aug 2014

145

137

Sources: Methanex, Southern Chemical

By Lane Kelley