US methanol distributor Southern Chemical cut its domestic May methanol contract by 10 cents to $1.70/gal FOB US Gulf, the company said Thursday in a letter to customers.
The decrease follows an 11-cent drop, to $1.80/gal FOB US Gulf, in April. After discounts and rebates averaging 13%, the net effective contract price for April would be about $1.479/gal.
An SCC decrease was in line with market expectations as spot pricing has continued to fall in the US.
The market has been characterized as oversupplied because of large volumes of methanol arriving from Southeast Asia in March, April and May. Spot prices fell an additional 8.25 cents Wednesday to be assessed at $1.30-1.3050/gal FOB USG after a flurry of trades at bearish prices.
Vancouver-based Methanex has not announced its April US methanol contract price.
SCC is the US distributor for Methanol Holdings Trinidad. Methanex is the largest producer of methanol in the world by capacity.
