Methanol is one of a few chemicals that is directly impacted by the price of natural gas, and as the chart below shows, the pain in China (and in Europe) is extreme and it is unlikely that any facilities that require imported natural gas – or local gas with prices based on imports – are operating today. The volume and margin opportunities for those companies connected to low priced natural gas – the US, the Middle East, and other niche locations such as Trinidad, are as good as they have ever been and we are a little surprised that Methanex did not push a little harder with US pricing, given that export netbacks are likely surging. Urea and ammonia are in the same boat and prices are much higher, but the US is a net importer and international prices are directly impacting the US price.
