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Rollover expected for US March methanol contracts: sources

Houston — March contracts for US methanol will likely come at a rollover from February, market sources said Monday.

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Platts assessed the net price of February US methanol contracts at 107.45 cents/gal FOB USG. The net effective contract assessment applies a 13% discount to the range of contract prices from Methanex and Southern Chemical Corporation, with the 13% discount coming per market feedback.

The expectations come on the relative stability of the spot market over the course of the month, sources said. US spot methanol has remained between 104.50 cents/gal FOB USG and 107 cents/gal FOB USG during the month.

Market sources said spot activity has slowed with participants expecting contract announcements this week. The announcements typically come in the final week ahead of the month covered by the contract.

In spot activity, Platts last assessed US methanol at 104.50 cents/gal FOB USG on Friday, stable from the previous day.

--Justin Schneewind,
--Edited by Derek Sands,