MMSA Methanol Notes – 2020-02-25
Methanol Affordability in Chinese Gasoline Blending – Positive, yet Blending Limited
Since last exploring the topic of methanol and gasoline blends (August 2019), gasoline prices in China have been relatively flat until this month, where they have dropped notably, while methanol prices have cycled at low levels. After adjusting for energy content, methanol values remain at high spreads below gasoline in China, implying a “green light” for blending demand. Nevertheless, demand for gasoline overall has slumped in the wake of COVID-19 and a slowing demand growth, and methanol blending amounts have suffered accordingly.