London — The European methanol fourth-quarter contract price will most likely remain unchanged despite falling spot prices, market participants say.
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"I don't think [the contract price] will decrease even if the spot price drops another Eur5/mt by the end of the week," a source said.
The European spot price has fallen Eur11.50 over the past week to Eur260/mt ($306.50/mt) FOB Rotterdam Monday.
"I think a rollover is justified," a consumer source said.
Market sources generally dismissed the idea of a lower CP but did not discard the idea of a modest increase.
"Rollover would make most sense but a Eur5/mt rise is also possible," the first source said.
The contract price was expected to increase a few weeks ago because of higher Asian markets which hit a six-month high of $360/mt.
However, since then, the market has fallen and was last assessed at $335/mt CFR China Monday.
Canada's Methanex increased its European Q4 CP by Eur10 to Eur330/mt at the beginning of last week.