Gas & Petrochemicals
Methanol
Methanol is a globally traded chemical feedstock used in formaldehyde, acetic acid, MTBE, olefins and fuel applications.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- ICIS CFR China / Southeast Asia spot assessments
- FOB Rotterdam / European contract references
- US Gulf spot and contract references
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Spot trades commonly reference regional ICIS/Argus/Platts values ± differential. Term sales can reference producer posted contract prices less a negotiated discount, or use quarterly/monthly regional contract settlements.
PRICE DRIVERS
What moves the physical differential?
- Natural-gas feedstock cost
- MTO / derivative demand
- Plant outages
- Middle East and China supply
- Freight
PHYSICAL TRADE
Commercial considerations
CFR China and Southeast Asia are important Asia references. Contract structures vary considerably by producer and customer.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a Methanol requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.