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US methanol drops to six-month low on weak demand, China concerns

https://www.chemnet.com   Jul 29,2015 Platts
US spot methanol declined 2.75 cents for prompt-month product Monday to reach a six-month low, as demand weakness, declines in the wider energy complex and concerns over the Chinese economy weighed on the market.

Spot pricing reached 99.75-100.25 cents/gal FOB USG for August after a trade at that level, marking the lowest point since an assessment at that same level on January 21, according to Platts data.

A trading source said there was little buying interest. Market sources have seen limited activity in recent days, saying the market has entered a summer doldrums period.

Developments in the wider energy complex and concerns about the Chinese economy also played a factor, market sources said.

Crude and gasoline futures prices reached their lowest levels in more than three months on Monday. NYMEX September crude fell $0.75 to a four-month low settle of $47.39/barrel, and NYMEX August RBOB slipped 0.78 cent to a three-and-a-half-month low of $1.82040/gal.

In China, the Shanghai Composite Index shed 8.5%, the largest daily fall since February 2007. Chinese spot methanol declined $8 on the day to $283/mt CFR China.

The Chinese spot market has fallen 9.3% since the start of the month. The US spot market has fallen 8.7% in the same period.
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