MMSA Methanol Notes – 2019-12-31


1Q 2020 MMSA Methanol Price Forecast Updates Now Online – Prices, Margins Poised for Rise from Floor as MTO Affordability Beckons



Global methanol markets continue to scrape along the bottom of marginal costs to produce (see chart, left “Global Methanol Pricing Comparison, taken from the MMSA Methanol Market Weekly Analysis). Yet signs that prices and margins can improve are evident, including improved MTO affordability as well as slowed global operational rates. As such, and assuming not major unplanned production upsets, methanol prices will recover on the strength of fundamentally (i.e. MTO operations dependent) undersupplied markets, with price levels needing to yield margins that can sustain production required for demand growth into that important sector of demand, while supporting downstream economics.