Canada-based producer Methanex has cut its Asian Posted Contract Price (APCP) by $10/t for October in line with falls in regional methanol prices.
Its APCP for October was set at $305/t today, $72.50/t higher than current spot prices in China. The drop in the APCP follows persistent weak market sentiment in Asia on rising supplies and falling demand from key downstream sectors like methanol-to-olefins.
Spot prices in China fell from $255/t cfr in mid-August to $232.50/t in early September on weak market fundamentals, falling crude futures and a downturn in China's macroeconomics. Liquidity since then has plunged in the spot market and prices have been steady at $232.50/t.
Methanex usually sells to its Asian customers based on APCP plus a variable structure of discounts across countries. It can also sell based on a combination of APCP plus the average of spot prices.
mc/rjd
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