...Prices to Remain Subdued Fitch Ratings forecasts the recovery from currently depressed methanol prices will be muted in the near term due to our expectations for continued low oil prices and further global capacity additions, despite favorable long-term demand trends. Global methanol prices have recovered somewhat from 2016 lows due to higher demand from newly commissioned Chinese MTO facilities. However, the expected start-up of additional capacity, including OCI N.V.'s 1.8 million tonne methanol facility in late 2017, and our revised long-term projections for the price of crude oil, will likely mute much of the benefit of the slight rebound in oil prices in the near term. Shrinking U.S. Supply Deficit Eliminates U.S. Price Premium The shrinking U.S. methanol supply deficit and reduced international shipping costs has reversed the price premium the U.S. used to enjoy over China, as U.S. methanol now trades at a discount to Chinese methanol. New supply additions in the U.S. of around 5...
