Methanex drops June methanol contract price to 87 cents/gal

HIGHLIGHTS

May CP nominated at 94 cents/gal, down from 108 cents/gal in April

June CP sees third consecutive decrease

Petrotahlil — Canada's Methanex nominated its North American methanol contract price at 87 cents/gal for June, down from 94 cents/gal in May, it said.

The company cut the contract price to 94 cents/gal in May from 108 cents/gal in April, before making a further cut for June. The June decrease was the third in row.

The spot price for US Gulf Coast methanol weakened throughout May, having fallen consistently in April, as the coronavirus pandemic led to weaker demand for methanol derivative products such as formaldehyde and MTBE, and to a lesser extent, acetic acid.

Weaker spot methanol prices have also coincided with persistently weak WTI NYMEX crude futures prices. After having fallen to historic lows in mid-April, domestic crude futures have since recovered some but remain well below the levels seen at the start of 2020.

Spot methanol was assessed at 58 cents/gal May 1, but on Friday had fallen 4 cents/gal to an assessed value of 54 cents/gal FOB USG.

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

Platts 

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