MMSA Methanol Notes – 2020-05-05
Russian Apparent Methanol Demand – Solid Start to 2020 is Threatened as Prices Fall
Russia remains a large force in global methanol markets, with access to ample and low USD cost natural gas, which allows it to export almost half of its total methanol production, primarily to EU member states. Methanol apparent demand growth in 2019 was slightly negative, with the back end of the year hurt by slowed production. Russia primarily uses methanol for the manufacture of formaldehyde, which was challenged as well in 2019. As 2020 begins, data suggests that, given further expected slowdowns in demand, methanol demand may well shrink again in 2020.