Houston --7Aug2007 The US spot methanol market continued to stagnate Tuesday morning as
sources were at odds regarding the actual condition of the methanol market.
Production problems in both Chile and Trinidad have led to confusion
regarding supply side conditions and have stunted trade activity. "The market
is holding tenuously right now," one source said.
Early day notional buy and sell ideas were talked at 78-80 cents/gallon
FOB USG. The last reported deal, for 20,000 barrels, transacted Friday at 79
cents/gallon FOB USG.
In the meantime, market participants were reportedly waiting it out.
"I would presume that there's a lot of wait and see right now with supply
availabilities, given the recent Methanex announcements on Chile and what's
going on in Trinidad," said one source.
In Chile, Methanex owns the 3.8 million mt/year Cabo Negro methanol
complex but the plant has been operating below full capacity this year due
to reduced gas supplies from neighboring Argentina. The company said in its Q2
report that it expects to have all four units at Cabo Negro back online by Q4.
In Trinidad, the 67 day shutdown of the BP Amherstia natural gas platform
has impacted the entire Point Lisas Industrial Estate, which houses methanol
facitilies owned by both MHTL and Methanex.
sources were at odds regarding the actual condition of the methanol market.
Production problems in both Chile and Trinidad have led to confusion
regarding supply side conditions and have stunted trade activity. "The market
is holding tenuously right now," one source said.
Early day notional buy and sell ideas were talked at 78-80 cents/gallon
FOB USG. The last reported deal, for 20,000 barrels, transacted Friday at 79
cents/gallon FOB USG.
In the meantime, market participants were reportedly waiting it out.
"I would presume that there's a lot of wait and see right now with supply
availabilities, given the recent Methanex announcements on Chile and what's
going on in Trinidad," said one source.
In Chile, Methanex owns the 3.8 million mt/year Cabo Negro methanol
complex but the plant has been operating below full capacity this year due
to reduced gas supplies from neighboring Argentina. The company said in its Q2
report that it expects to have all four units at Cabo Negro back online by Q4.
In Trinidad, the 67 day shutdown of the BP Amherstia natural gas platform
has impacted the entire Point Lisas Industrial Estate, which houses methanol
facitilies owned by both MHTL and Methanex.
