Spot market runup over; buyers anticipate soft summer
Spot methanol markets spiked to 38 cts/gal late last month as a result of planned and unplanned outages. Gulf Coast markets have already retreated from those highs, however, as traders and consumers anticipate more plentiful supply and lower prices by midsummer. May postings are likely to roll over at April levels of 37 cts-39 cts/gal, and late April notices that producers would no longer honor off-list discounts are being disregarded. The trigger for the price runup was a production snag a week before the recent fire at Hoechst Celanese`s Clear Lake, TX acetic acid plant. The company reports methanol is back on-line. In addition, Cytec`s Fortier, LA methanol plant is in a two-month turnaround, and Texaco`s Delaware City, DE plant has been shut. Methanex (Vancouver) was taking output from those two units and was said to be in the spot market along with Hoechst Celanese`s partner, Valero, which exacerbated the spike. Lyondell is just restarting methanol after a maintenance outage. Although Texaco says the Delaware City plant is off-line for six months, market watchers do not expect it to restart soon, based on its cost structure at current prices. Quantum was planning a two-month maintenance and expansion project at its Deer Park, TX methanol and acetic acid plant, but in light of the Hoechst Celanese acetic outage Quantum may delay that project. Midyear is the startup target for the new BP Sterling plant at Texas City, TX.
- OSTI ID:
- 508304
- Journal Information:
- Chemical Week, Journal Name: Chemical Week Journal Issue: 17 Vol. 158; ISSN CHWKA9; ISSN 0009-272X
- Country of Publication:
- United States
- Language:
- English
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