Methanex posted contract prices moved lower in the second quarter and stabilized early in the third quarter, the company said Thursday, citing softening demand, which included methanol-to-olefins and flat supply, among other drivers.
North American monthly methanol contract prices declined $56/mt in the second quarter, since April posted prices at $442-$386/mt. Posted contract prices stabilized to $376 for July and August, reflecting industry rates, energy prices, and the strength of demand, the company said in a quarterly earnings announcement.
Posted methanol contract prices during the third quarter are expected to be lower than second quarter Methanex CEO John Floren said Thursday.
Methanol demand in the second quarter was comparatively stable versus the first quarter, while it was about 5% higher compared with second quarter 2016. A large portion of demand is accounted from the MTO sector, these facilities were under planned maintenance and experienced technical issues during the quarter.
There are three MTO units currently under development with combined capacity to process over 3 million/mt of methanol yearly, and are expected to be completed in mid- to late 2018, the company reported.
Methanex said traditional chemical demand, which accounts for approximately 55% of global methanol demand, is projected to grow, in close correlation to GDP and industrial production growth rates.
Methanol supply was also flat in the second quarter compared to the first quarter, the company reported. Planned turnarounds in the US Gulf Coast and Europe caused market tightness, balanced out by improved production in other regions of the world, such as Asia and the Middle East.
