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The changes in Adjusted EBITDA resulted from changes in the following:
Q1 2013 Q1 2013 compared with compared with($ millions) Q4 2012 Q1 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Average realized price $ 36 $ 49Sales volume (10) (1)Total cash costs 4 8----------------------------------------------------------------------------Increase in Adjusted EBITDA $ 30 $ 56----------------------------------------------------------------------------
Average realized price
Three Months Ended ------------------------ Mar 31 Dec 31 Mar 31($ per tonne) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Methanex average non-discounted posted price 474 450 437Methanex average realized price 412 389 382----------------------------------------------------------------------------
Methanol market conditions remained healthy and pricing increased during the first quarter of 2013 (refer to the Supply/Demand Fundamentals section for more information). Our average non-discounted posted price for the first quarter of 2013 was $474 per tonne compared with $450 per tonne for the fourth quarter of 2012 and $437 per tonne for the first quarter of 2012. Our average realized price for the first quarter of 2013 was $412 per tonne compared with $389 per tonne for the fourth quarter of 2012 and $382 per tonne for the first quarter of 2012. The change in average realized price for the first quarter of 2013 increased Adjusted EBITDA by $36 million compared with the fourth quarter of 2012 and increased Adjusted EBITDA by $49 million compared with the first quarter of 2012.
Sales volume
Methanol sales volumes excluding commission sales volumes were lower in the first quarter of 2013 compared with the fourth quarter of 2012 by 111,000 tonnes and this resulted in lower Adjusted EBITDA by $10 million.
Total cash costs
The primary drivers of changes in our total cash costs are changes in the cost of methanol we produce at our facilities (Methanex-produced methanol) and changes in the cost of methanol we purchase from others (purchased methanol). All of our production facilities except Medicine Hat are underpinned by natural gas purchase agreements with pricing terms that include base and variable price components. We supplement our production with methanol produced by others through methanol offtake contracts and purchases on the spot market to meet customer needs and support our marketing efforts within the major global markets.
We have adopted the first-in, first-out method of accounting for inventories and it generally takes between 30 and 60 days to sell the methanol we produce or purchase. Accordingly, the changes in Adjusted EBITDA as a result of changes in Methanex-produced and purchased methanol costs primarily depend on changes in methanol pricing and the timing of inventory flows.
