Methanol demand in Europe has improved in 2012 following a weak fourth quarter of 2011. In many cases offtake has been higher than expected and has taken some market participants by surprise, resulting in relatively high spot prices compared with the quarterly contract price.
It is possible that some of this renewed demand is a temporary result of restocking, as many buyers ran down inventories at the end of 2011 because of fears of a more sustained slump. Yet many see the market as structurally on the short side and believe the prices could be supported for some time.
Furthermore, prices in Europe, the US and China have reached near parity, and this is likely to promote stability in all regions.
US prices have held relatively steady in 2012. The market has been undermined by poorer-than-expected demand in the first quarter, but supported by a turnaround at a major plant in Trinidad.
In China, demand has also disappointed but again this has been counteracted by tighter supply, and prices are not expected to change significantly over the coming months.
Methanol demand in Europe has improved in 2012 following a weak fourth quarter of 2011. In many cases offtake has been higher than expected and has taken some market participants by surprise, resulting in relatively high spot prices compared with the quarterly contract price.
It is possible that some of this renewed demand is a temporary result of restocking, as many buyers ran down inventories at the end of 2011 because of fears of a more sustained slump. Yet many see the market as structurally on the short side and believe the prices could be supported for some time.
Furthermore, prices in Europe, the US and China have reached near parity, and this is likely to promote stability in all regions.
US prices have held relatively steady in 2012. The market has been undermined by poorer-than-expected demand in the first quarter, but supported by a turnaround at a major plant in Trinidad.
In China, demand has also disappointed but again this has been counteracted by tighter supply, and prices are not expected to change significantly over the coming months.