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DeWitt's News
 
Key Drivers - Aug 03,2012

Methanol

Americas U.S. spot methanol prices were mostly unchanged as well as the summer slowdown continues. The spot price range for the week is posted at 107.0-108.0 cents per gallon ($358 per metric ton; €291 per metric ton).
Europe Europe spot methanol interest was minimal and pricing essentially unchanged; posted at €282 per metric ton, FOB Rotterdam, T-2 basis. ($347 per metric ton, 104 cents per gallon).
Asia Asia region spot prices are up $5 on the high end of the range; posted at $355-$375 per metric ton, CFR (107-113 cents per gallon, €297 per metric ton). Cautious sellers may look to push prices up next week.
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Methanol - Newsletter#: 728
Date: 08/10/2012

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Americas

MARKET/PRICING - Trading activities were “slight” this week with many in the industry still enjoying summer vacation time and/or the reality of the summer slowdown. Even occasional interest was difficult to nail down. Early week, buying side sentiment as floating spot price ideas in the 106-107 cents per gallon range, but could generate no interest from sellers—seeing no reason to let prices slip this week. Offers seemingly remained much closer to the 109 cents per gallon level and this is where they end the week. We understand there were only a couple of deals consummated in the public domain—one at 107.5 followed by a later-week 108.25 agreement. DeWitt will post the week’s spot methanol price range at 107.5-108.5 cents per gallon ($357-$361 per metric ton, €291), up 0.5 from last week.



Europe

MARKET/PRICING - Many industry players remain on vacation/leave this week, but trading activities were seen a bit more active as compared to last week. Pricing moved up a few Euro’s as well. A “few” barge lots of 1 Kt were traded for August lifting, in second part of the week, at prices in a range of €283-€286 per metric ton, standard Rotterdam conditions. However, it seems product for September lifting was more popular for this week, and traded at levels a few Euro’s higher several times. Spot deals for September lifting were understood concluded in the €286-€287 per metric ton area; a few 1 Kt lots. On the basis of August business identified, DeWitt will post this week’s spot methanol price range at €283-€286 per metric ton, FOB Rotterdam, T-2 basis (nominal 105-106 cents per gallon, $349-$352 per metric ton); up €2.5 from last week.



Asia

MARKET/PRICING - The Asia methanol market is mostly quiet for another week, although we do see prices still firming in China; following last week’s direction. The regions overall supply and demand picture is mostly unchanged. Southeast Asia remains very bearish about downstream methanol demand while China continues mostly unchanged with major derivative operating rates still poor. Demand sentiment continues to follow the general sagging economy with little expectation of a turnaround in the near term. Futures pricing (across many major petrochemicals) were seen firming in the China trading arenas. Iran imports into China were greatly reduced in June and will be slightly improved when July figures are available. Many see August moving closer to normal, but still reduced. China domestic production is starting to improve (even more) through August and should still be able to easily cover demand. Methanol production in the region is only short the small PML1 unit, but this is targeted to return to operations “soon”. Asia region spot methanol prices are unchanged from last week; posted at $355-$375 per metric ton, CFR basis, depending on country (107-113 cents per gallon; average €297 per metric ton).

Current Prices

Methanol

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Unit
RegionPeriodProductSpot LowSpot HighUnitContract LowContract HighUnitDescription
NA Jul 13 Methanol Transaction   1.5990 1.5990 $/Gal 
  Oct 13 Methanol 1.4863 1.5244 $/Gal 1.5900 1.6500 $/Gal 
WE Oct 13 Methanol Contract   414 414 €/MT 
  Oct 13 Methanol T-2 372 372 €/MT   
AP Oct 13 Methanol Korea - CFR 440 454 $/MT   
  Oct 13 Methanol Taiwan - CFR Spot 438 448 $/MT   
  Oct 13 Methanol China - CFR Spot 426 444 $/MT   
  Oct 13 Methanol SEA - CFR Spot 445 459 $/MT   
  Oct 13 Methanol WC India - CFR Spot 386 399 $/MT   
NA = North America, SA = South America, WE = West Europe, AP = Asia Pacific
Historical Pricing
 
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