Asia methanol prices have rebounded by 21% since August
For two months in a row, Asia methanol contract prices have cumulatively rebounded by 21% or $45/ton (Chart 1). Prices are currently at $260/ton. This recovery was inevitable as spot prices in Asia had fallen below the cash cost of Anthracite coal-based Chinese producers of $220/ton. This was resulting in supply cuts as companies cannot afford to persist with production if prices remain below marginal costs. Besides, historically speaking, prices have never stayed below $200/ton for long.
Chart 1: Methanol Historical Prices (USD per ton)
Source: