- Discussions in South Korea, SE Asia pick up
- Sentiment in China mixed
Asian methanol prices in South Korea and Southeast Asian firmed up in the week ending July 3 on prompt spot demand.
In Southeast Asia, a trade for a 3,000-mt parcel for delivery to the Thai port of Map Ta Phut was heard done at a 0.5% premium to formula price. The buyer needed another 3,000 mt and showed keen interest at $195/mt CFR Map Ta Phut, while a seller did not want to budge from his selling indication at $200/mt CFR Map Ta Phut. The impasse meant that no trade was concluded on July 3.
Spot demand in South Korea also picked in the week ending July 3. A buyer needed 10,000 mt of methanol for delivery to its end-user in August and was prepared to bid at $190-$195/mt CFR Korea. However, Middle East suppliers deemed his bid as too low as they could get better value elsewhere.
Sentiment in the Chinese market was mixed in the week ended July 3. Domestic production in China had reduced, not insignificantly, last month. Domestic prices found support this week even though demand remained tepid, trade sources said. The inventory at China's eastern ports increased 1.18% on the week to 1.24 million mt, capping the upside in prices.
Earlier in the week, a non-sanctioned parcel of 10,000 mt was traded at $170/mt CFR China, and a similar-sized, non-sanctioned parcel was heard traded at parity to formula prices.