US methanol contracts from Methanex are expected to roll over for June while Southern Chemical Corp is expected to decrease by 2-3 cents, market sources said Thursday.
"SCC will probably come down so they are within a couple cents of the Methanex price," a source said.
If Methanex rolls over the price for June, it would remain at the current $1.60/gal FOB US Gulf for a second consecutive months. If SCC decreases its price for June, it would likely be 2-3 cents lower than the current price of $1.65/gal FOB US Gulf. Methanol contract prices for the next month are usually announced during the last week of the current month.
Spot prices have remained above $1.30/gal since February 15. Those relatively high prices have been attributed to a number of factors, including the looming shutdown of Methanex's sole operating plant in Chile, turnarounds at production facilities in Venezuela, gas curtailments in Trinidad that have led to producer short-covering and concerns over the Brazilian government's decision to suspend import duties on methanol for 180 days beginning April 8, sources said.
Thursday's spot methanol assessment was $1.3950/gal FOB US Gulf.
