US methanol contracts for September are likely to be unchanged or up slightly from August levels, sources said Friday.
The September contract announcement from Southern Chemical is expected to be posted at a rollover or a slight increase from the August contract, while Methanex is expected to post September contracts at a rollover, sources said.
Spot prices were assessed Friday at $1.1875/gal FOB US Gulf, 2.75 cents above price on July 25, when Methanex posted its August contracts.
If SCC posts contracts unchanged from the August price of $1.37/gal FOB USG, it will be the first rollover after five straight months of contract price decreases. If Methanex posts its contracts flat, it will be the second straight month the company's price has held at $1.45/gal FOB US Gulf.
"Methanex is pushing for a rollover, but SCC may have to move higher," said one source.
"[Producers] usually push for a rollover in September, or at least try to keep prices from moving lower, given that September product tends to get a bit tighter [on seasonal demand]," said another source.
Spot prices were mostly stable during the first two weeks of the month, heard to be trading in a narrow range between $1.14/gal FOB US Gulf and $1.1550/gal FOB US Gulf. But they have moved up by 3.25 cents since August 15, Platts data showed.
