Southern Chemical Corp will reduce its April North American posted methanol contract price by 13 cents/gal, to 132 cents/gal FOB USG, the company said Thursday.
The April price falls from the company’s highest posted contract price since November 2014.
Market sources expected April contract pricing to come lower due to softer spot pricing since the March announcement.
US spot methanol has fallen 17% since reaching 130 cents/gal FOB USG on February 27, when March contract prices were announced. US methanol was assessed Wednesday at 107.75-108.25 cents/gal FOB USG for April and May.
Falling Chinese spot pricing pushed global spot levels lower for much of the last month, sources have said.
The market now awaits an announcement from April from Methanex.
Methanex ranks as the world’s largest methanol producer by capacity. SCC serves as the US distributor for Methanol Holdings Trinidad, the largest producer in the Americas at 4.1 million mt/year.
–Justin Schneewind, firstname.lastname@example.org
–Edited by Richard Rubin, email@example.com