US methanol distributor Southern Chemical Corp. will rollover its June US contract price to 133 cents/gal ($442.89/mt) FOB US gulf from May, the company said Tuesday.
This is the fifth consecutive month that Houston-based SCC has posted its contract price at 133 cents/gal FOB US Gulf. After discounts and rebates of 13% average, the June contract price is close to 115.71 cents/gal.
The rollover nomination, announced in a letter to customers, surprised some market participants but was in line with the expectations of others.
With recent volatility in the spot market followed by stabilization in the last few weeks, market expectations had been mixed.
Friday spot methanol prices were assessed at 116.50-117 cents/gallon FOB US Gulf, with a deal for June heard at 118 cents/gal FOB US Gulf.
