CMAI Completes 2009 World Methanol Analysis

Chemical Market Associates, Inc. (CMAI) announces the completion of the 2009 World Methanol Analysis. Published annually, this study provides information on supply, demand, production, history and forecasts for methanol capacity, trade, technology analysis and price forecasts. The analysis leverages all of CMAI’s worldwide consultants to offer a global view of the major issues facing this important industry, such as: How much of the announced new capacity will come on stream as planned? What impact will there be upon market pricing as this material seeks a home? How much new methanol demand and supply will actually be self-contained and for all practical purposes removed from the methanol industry as it is known today?

Industry Overview: New demand segments give needed market support

CMAI consultants assess that the year-over-year growth seen in the methanol industry the last few years stumbled in 2008. Record high crude oil prices, a disastrous housing market in North America and to a lesser degree in China and other parts of the world, and a visibly slumping automobile sector have negatively impacted 2008 methanol demand. If it were not for the “newcomers” DME and direct gasoline blending, methanol demand would fight to be positive in 2008 versus 2007. MTBE continues to erode slightly while acetic acid, due mostly to large expansions in Asia, continues to show solid growth. China’s appetite for methanol across much of the derivative slate, plus methanol blending into gasoline and DME will continue to fuel methanol growth. Demand in 2009, 2010 and beyond will likely be in double digits due to more gasoline blending, DME demand and MTO/MTP feedstock requirements.

Demand: Methanol’s value in fuel and new chemical intermediate technologies sets the stage

In spite of the ongoing decline in MTBE production/demand, the industry will continue to exhibit strong growth. However, due to the adverse economic conditions affecting some of the major methanol derivative sectors, demand could have been well higher. Biodiesel, direct gasoline blending, DME and MTO/MTP will drive methanol demand to levels far above expectations of just a few years ago.

CMAI’s 2009 World Methanol Analysis comprises eleven years (2003-2013) of study: five years of history, the current year, and five years of forecast and is available in book and CD-ROM format, with access to CMAI’s Online Capacity and Supply/Demand databases.

CMAI is a chemical, plastics, fibers and chlor-alkali consulting firm that services a wide range of companies all over the world. Since 1979, CMAI’s goal has been to provide accurate, timely consulting services for the worldwide industries that it covers. CMAI maintains offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai. Clients to CMAI services include chemical and oil companies, engineering & construction companies, banking and financial institutions, plastic converters, grocers/retailers, government agencies and trading companies.