IHS Chemical Week

Economics :: Prices

Europe Contract Prices Decline Less than Expected

11:48 AM MDT | August 2, 2007 | Gregory Dl Morris

Major methanol producers agreed to a third-quarter contract price of €220/m.t. fob in Europe last week, in what observers are calling a move to put a floor on the weak market. The settlement represents a €30/m.t. decrease from the second-quarter level, but is higher by at least €10/m.t. than what analysts expected the settlement would be. The third-quarter settlement is still 30% higher than the current European spot-market range of €165-€175/m.t. fob, sellers say. The European contract is a truly negotiated settlement, representing an...

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