Nerv

Methanex: Worth Another Look

The fundamentals are against Methanex. The number one use of methanol is in formaldehyde production which is in turn used to treat wood used in construction. This market is one that is obviously not strong right now. It is also directly correlated to fuel prices as it can be used directly as a fuel, or converted into the fuel additive MTBE which I believe is still used in Europe, though not in North America.

They are having a hard time getting cheap Argentine gas to their Chilean plant - a problem that doesn't look like it's going away any time soon, and they are competing with 2 Middle Eastern mega plants that just came online.