The arrangement was a swap based on price for CFR China Methanol. The swap volume was for 1kt and was traded at $215 USD/MT on [April 2020] maturity.
In February 2020, the SGX launched methanol futures and swap contracts to enable methanol producers, traders and downstream users manage risk and improve price discovery amid growing demand.
Reef Al Lahiq, Petrochemicals Broker at SCB Group, commented:
“Methanol into CFR China main ports has experienced heavy volatility over the years. China is also a major volatility driver for methanol market participants outside of Asia. SCB is excited to facilitate liquidity in this market, where for the first time buyers and sellers will be able to effectively neutralise their volatility risk and lock in fixed price on their termed volumes and in the spot market.
“We look forward to working with other traders, producers and rice market participants to support them with similar trades in the near future.”
For further information, please contact:
- Pauline Tainton, Marketing Officer, SCB + 41 22 365 5310
- Camarco, Financial PR, +44 20 3757 4995
Billy Clegg, Jennifer Renwick, Monique Perks
