North American posted methanol contract pricing appears posted to rise 5-10 cents/gal for January amid recent strength in US spot pricing, market sources said Wednesday.
US spot methanol was assessed Wednesday at a 17-month high of 103.75-104.25 cents/gal FOB USG. The price marks an increase of 6% since the announcement of December's posted contract prices on November 29, according to S&P Global Platts data.
"I have heard an increase of 5-10 cents discussed, and that seems to make sense," a source said.
Announcements for monthly posted contract prices typically come out in the final business days of the preceding month.
US spot pricing has reached that high amid a global strengthening in spot pricing, with European spot recently at a 19-month high and Chinese spot pricing coming to a 26-month high earlier this month.
Methanex's posted December contract price came to 110 cents/gal FOB USG and Southern Chemical Corp.'s rose to 112 cents/gal FOB USG.
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.
With discounts and rebates averaging 15%, the net contract price for December totaled 93.50-95.20 cents/gal.
The spot discount to the average list price came to 7 cents/gal on Wednesday, below the 2016 average of 15.26 cents/gal and under the 2015 average of 23.95 cents/gal, Platts data showed.
