Methanol prices are set to rise: Morgan Stanley

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Morgan Stanley expects methanol prices to rise further in the short term, due to supply disruptions in the New York Region and in Europe. That’s what the bank said in a report on OCI.

The price of a contract for delivery of methanol in September rose due to the tight market to $ 592 per tonne, or an increase of 9.2 percent compared to a month earlier. Since January, the price has now risen 63%.

The planned and unplanned production disruptions in these regions are likely to outweigh the weaker imports of methanol, China, July 11 per cent lower than the previous month, and 35 per cent year on year, partly as a result of adverse weather conditions. Other factors that reduce price in the short term, according to Morgan Stanley, are mixed Purchasing Managers Indices for the industry and higher oil stocks.

Morgan Stanley has a considered advice on OCI and a price target of 26.50 euros. The OCI share was one percent higher on Monday at 20.26 euros.

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