MMSA Methanol Notes – 2020-03-03

$66.13

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

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Description

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).