Vancouver-based Methanex has cut its June contracts in the US by 10 cents to $1.60/gal FOB US Gulf, the company said Friday.
The decrease marks the third straight month of 10-cent declines. After discounts and rebates that average 13%, the net effective contract price for June would be $1.392/gal.
The 10-cent decline came as a surprise to many market participants, who had anticipated a decrease of 15-20 cents. Spot prices have declined 13.75 cents, or 10.6%, from April 25, when the May contract price was posted.
Methanex is the largest producer of methanol in the world by capacity.
The market is still waiting for the contract price announcement from Southern Chemical Corp., which was expected to decrease prices 15-20 cents.
SCC is the US distributor of methanol produced by Methanol Holdings Trinidad Ltd.
Platts assessed methanol Thursday at $1.165/gal FOB US Gulf.
