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Editor: Steven McGinn, steven.mcginn@icis.com
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
Subscriber note: This 18 December edition of the weekly Methanol (US Gulf) report is the last for 2009. The next report will be published on 8 January 2010. For more details on the publishing schedule, please visit www.icispricing.com
US methanol spot barge prices increased during the week ended 18 December. Bids and offers increased despite a dearth of activity.
One deal was reported in the US market at 98 cents/gal FOB. The parcel was purchased by a consumer who was reportedly short for January.
Spot discussion levels were wide-ranging, but mostly skated around mid-90 cents/gal. Spot barge prices were assessed at 95-98 cents/gal FOB USG, playing on the weaker side due to lack of spot activity. Most volumes that were moving were done on contract, sources said.
Sources indicated that January contract barge prices, nominated by Southern Chemical Corporation and Methanex, will likely roll over at 108-111 cents/gal FOB USG.
In the European market, ideas for the first quarter contract price (CP) remained wide ranging in the week ending 18 December, leading several sources to doubt it would be settled before Christmas, or even the new year.
Others noted there had been a pick-up in negotiations over the past few days, possibly indicating that some large players were keen to settle soon.
Buyers and sellers were entrenched along familiar lines, with the former generally targeting a rollover or slight increase, and the latter pushing for more substantial increases of up to €260/tonne FOB Rdam.
Saudi Basic Industries Corp (SABIC) 1.7m tonnes/year methanol unit (Ar-Razi 5) in Al-Jubail remained shut down due to technical issues. The start date could not be confirmed.
Iran's National Petrochemical Company (NPC)1m tonnes/year Fanavaran methanol plant in Bandar Imam was operating at 85%, down from 100%. Zagros I and II methanol plant at Assaluyeh totalling 3.3 m tonne/year were operating at 60%. The plants were operating at lower rates due to a shortage of natural gas in winter.
($1 = €0.70)
This week in ICIS news ( www.icis.com):
17-Dec-09 23:30 El Paso execs sentenced to prison over natgas market manipulation
17-Dec-09 17:07 US natural gas futures up 30 cents on large supply draw
17-Dec-09 16:10 Europe methanol spot market gets busy amid fears of tight Q1
