The global methanol and acetyls industries are evolving at a vigorous pace. Methanol market dynamics are quickly changing with capacity expansions, disparate production economics worldwide, increasing challenges to long-term demand growth, and a shifting focus to methanol’s role in the path toward energy transition. Meanwhile, the acetyls industry continues to thrive on the back of economic recovery but with equally challenging conditions stemming from volatility in pricing and supply.
Iranian sanctions and the potential impact on project progress, production output, trade flows, and prices. If the sanctions continue, Iran will remain restricted to selling in to China and India and prices in these countries may be lower than in other regions.
Sanctions and the potential impact on project progress, production output, trade flows, and prices Russia has become restricted to exporting to India or to local eastern and central European markets with little to no logistics alternative – at a price
If this policy is maintained, we are likely to see further lockdowns, reducing demand. However, the level of restriction is likely to ease over time; in addition, action is being taken to stimulate sectors such as the property market.
How consistently will these be applied –all over the country or just in the north? Will China relax these in an effort to stimulate its chemical industry, if the US-China trade war continues and particularly if China’s GDP growth falls below desired levels?
Implication: This could have a major impact on the operating rates of derivative units
We are likely to see more low-carbon projects announced, especially in Europe. Also, existing units could be reconfigured, perhaps with an associated carbon capture and storage scheme, in order to minimize their carbon footprint.
Methanol demand in important fuels sectors changing with global environmental initiatives Large demand for biodiesel and MTBE is increasingly threatened by growing capacity for non-methanol-based renewable diesel, restrictions of feedstock for FAME biodiesel, and the shift towards electric vehicles.
Vice President, Global Syngas Team Lead | Americas Acetyls Lead Chemical Market Analytics by OPIS
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Read BioDirector, Asia Methanol Chemical Market Analytics by OPIS
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Read BioDirector, EMEA & India Acetyls Chemical Market Analytics by OPIS
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