November 2004

Trends and Resources

HP Impact: HPImpact: Methanol: 18 MMton net new capacity to 2009

Global methanol supply and demand remains in a stalemate, according to a new industry analysis. "The proverbial planned and unplanned production outages, the delay of two world-scale facility startups..

Weirauch, Wendy, Hydrocarbon Processing Staff

Global methanol supply and demand remains in a stalemate, according to a new industry analysis. "The proverbial planned and unplanned production outages, the delay of two world-scale facility startups and an unexpectedly strong demand (particularly in China) have continued to put significant upward pressure on market prices," says a new study from CMAI (www.cmaiglobal.com). In addition, with constrained supplies, high US natural gas prices keep an ever-present floor price looming over the industry. Based on the current environment, the industry will need time to benefit from the mid-2004 new production capacity. Overall demand for methanol in 2004 is forecast to be near 2003 f

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