SCC nominates May North American methanol contract price of 93 cents/gal

New York — Southern Chemical Corporation nominated its North America methanol contract price for May at 93 cents/gal, down 12 cents, or nearly 13%, from April's posted price, the company said Monday.

The company had reduced its April contract price by 15 cents to 105 cents/gal, after keeping pricing for the March contract unchanged from February's high level of 120 cents/gal.

US spot methanol prices have continued to weaken throughout April as a result of disruptions from the coronavirus pandemic and falling NYMEX WTI crude prices. Weak product margins for MTBE, formaldehyde and acetic acid have partially impacted regional demand for feedstock methanol volumes as well, although no major domestic methanol producers have been heard to reduce supply as a result of lower prices.

Methanex also announced a lower nomination for May, cutting its contract price by 14 cents on the month to 94 cents/gal.

SCC's contract price does not include any discounts. In April, discounts averaged around 25%, according to S&P Global Platts data.