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Methanol price rises to NZ$350 per tonne
29 October 2004 - World methanol prices have risen strongly in a tight market with average realized prices at US$245 (NZ$351) per tonne for the September quarter, Methanex Corporation reports.
Bruce Aitken, president and CEO of Vancouver-based Methanex which operates two methanol plants in Taranaki, said prices had risen from US$222 (NZ$318) per tonne for the second quarter 2004.
Current spot prices in the United States have risen to about US$305 per tonne, though prices in Asia where most New Zealand-produced methanol is sold were currently between US$256 and US$272 per tonne.
"Looking ahead, we are optimistic that a favourable business environment and above average pricing will continue. We expect that the impact of planned new capacity additions during 2005 will be largely offset by further shutdowns of high cost global methanol production and increased demand," Mr Aitken said.
In New Zealand, Methanex produced 304,000 tonnes of methanol during the third quarter of 2004 compared with 229,000 tonnes during the second quarter. The company plans to produce approximately 250,000 tonnes during the fourth quarter. Methanex said it has the potential to produce up to approximately 375,000 tonnes of methanol in 2005.
