European methanol slips into contango framework
The marketplace framework for NWE methanol got on contango Wednesday as August rates continued to be steady during the holiday, as well as lower supply degrees expected in September stimulated an uptick popular for later freights, sources claimed.
"We have a mild contango structure, which is logical provided the supply characteristics entering into September. People have had high inventory degrees coming into Q3, August is still pretty stable, yet the degrees are drying up," a trader source claimed.
Northwest European methanol place rates were evaluated at Eur280.50/ mt FOB Rotterdam Wednesday.
Freights for distribution in August were analyzed at Eur279/mt, as well as for shipment in September at Eur283.50/ mt Wednesday, causing a 21 cent day-to-day contango framework throughout the Platts 5-30 day home window.
An offer was reported Wednesday at Eur282/mt which drew in no acquiring passion. On the other hand, two professions were reported for September delivery, the initial at Eur282.50/ mt, and after that at Eur283.50/ mt later in the day.
A producer source attributed thinner trading activity in August to the vacation period and also stated the contract-spot spread has actually been closer to typical just recently, encouraging clients to call greater contract quantities which would at some point soak up the Rotterdam volumes in August, prompting higher rates afterwards.
"Basically the spread is extra regular now so it urges individuals to call agreement volumes instead of pushing out to the following month," he claimed.
Existing costs places the spot market at a 13% price cut to the Q3 ECP of Eur322/mt.
industrial water treatment chemicals -spot discount rate struck a five-year high of 34% in June when contract prices went to Eur412/mt and also a wave of imported material pressed area rates to Eur271.50/ mt.
Looking ahead, market participants anticipate higher rates in September on a mix of scarcer feedstock natural gas during the summer season period as well as supply issues in the center East and Asia minimizing the amount of methanol readily available in the European area.
"We have a mild contango structure, which is logical provided the supply characteristics entering into September. People have had high inventory degrees coming into Q3, August is still pretty stable, yet the degrees are drying up," a trader source claimed.
Northwest European methanol place rates were evaluated at Eur280.50/ mt FOB Rotterdam Wednesday.
Freights for distribution in August were analyzed at Eur279/mt, as well as for shipment in September at Eur283.50/ mt Wednesday, causing a 21 cent day-to-day contango framework throughout the Platts 5-30 day home window.
An offer was reported Wednesday at Eur282/mt which drew in no acquiring passion. On the other hand, two professions were reported for September delivery, the initial at Eur282.50/ mt, and after that at Eur283.50/ mt later in the day.
A producer source attributed thinner trading activity in August to the vacation period and also stated the contract-spot spread has actually been closer to typical just recently, encouraging clients to call greater contract quantities which would at some point soak up the Rotterdam volumes in August, prompting higher rates afterwards.
"Basically the spread is extra regular now so it urges individuals to call agreement volumes instead of pushing out to the following month," he claimed.
Existing costs places the spot market at a 13% price cut to the Q3 ECP of Eur322/mt.
industrial water treatment chemicals -spot discount rate struck a five-year high of 34% in June when contract prices went to Eur412/mt and also a wave of imported material pressed area rates to Eur271.50/ mt.
Looking ahead, market participants anticipate higher rates in September on a mix of scarcer feedstock natural gas during the summer season period as well as supply issues in the center East and Asia minimizing the amount of methanol readily available in the European area.
