MMSA Methanol Notes – 2020-03-03


China Methanol Delivered Cash Costs – Demand Loss Pushes Prices to Rising Floor



MMSA China methanol delivered cash cost curve estimates show that methanol pricing has returned to cost floors amidst very poor demand. Nevertheless, demand growth post COVID-19 will necessitate higher methanol pricing for needed supply to emerge. As MTO and other operations return, short-term upward potential for methanol prices exists (as marginal demand should increase to create the need for supply from higher cost sources).