Houston (Platts)–24 Jan 2017 553 pm EST/2253 GMT
North American posted methanol contract prices for February will roll over or see increases of as much as 5 cents/gal, market sources predicted on Tuesday.
Those expecting higher pricing based those outlooks on the slight upward movement in spot pricing over the last month and the gap between the two primary posted prices, sources said.
“February should be up 3-5 cents/gal, but that’s mostly from one supplier being several cents lower than the other in January,” a source said.
US spot methanol was assessed Tuesday at 105.75-106.25 cents/gal FOB USG for January and February, the highest since it reached that same level in July 2015, S&P Global Platts data showed.
Announcements for monthly posted contract prices typically come out in the final business days of the preceding month.
Spot pricing has increased 1.50 cents/gal since the final announcement for January posted contract prices on December 29, Platts data showed.
Methanex placed its January posted price at 125 cents/gal ($416/mt) FOB USG, and SCC set its January posted price at 119 cents/gal ($396/mt) FOB USG.
With discounts and rebates averaging 15%, the net contract price for January came to 101.15-106.25 cents/gal.
The spot discount to the average list price came to 16 cents/gal on Tuesday, above the 2016 average of 13.59 cents/gal but below the 2015 average of 23.95 cents/gal, Platts data showed.
–Justin Schneewind, justin.schneewind@spglobal.com
–Edited by Lisa Miller, lisa.miller@spglobal.com
