Supply-demand constraints also contributed to Methanex Corp. (MEOH, Financial)’s performance for the quarter. Availability of Gulf Coast methanol was in question following Hurricane Harvey, causing prices to jump nearly 10%. About 75% of Methanex’s capacity is outside the U .S., and their Gulf Coast assets actually continued to operate normally. A large methanol-to-olefins (MTO) plant in China resumed production adding to methanol demand, which looks promising for the foreseeable future. According to a research report, one in five tons of global methanol production will be utilized for MTO production to satisfy expanding Chinese chemical demand by 2021.
From Bernard Horn (Trades, Portfolio)'s third quarter 2017 shareholder commentary.
