Chinese Oversupply of Methanol Impacts the Asian Market

In response to increased supply of Methanol from China, the commodity experienced a price drop of 3-6 percent in Asian markets. Prices climbed 80-100 percent during the second half of 2006 because the supply of Methanol was tight. The recent increase in supply is an expected correction. However, rising transportation costs and reduced vessel availability could lessen the price decline resulting from increased supply.

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