The Methanol Market Overview and its Dynamics

This blog comprises of detailed information on methanol and its production process, industrial applications, key competitors, and pricing trends.

Methanol: Introduction

Methanol is a chemical compound that belongs to a long line of organic substances. It consists of a methyl group linked to a hydroxy group. It is a colourless liquid that is also known as methyl alcohol.

Methanol vapours are heavier than air and significantly soluble in water.  It smells strongly like ethyl alcohol and is slightly sweet.

It has a boiling point of 64.96 degrees Fahrenheit (148.93 degrees Celsius) and has a melting point of -97.6 degrees Celsius. Methanol has a molar mass of 32.04 g/mol and a density of 792 kg/m3.

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At 93.9°C (137°F), it appears to be solid. It is light, combustible, and poisonous.

Methanol Production Process

• Methanol is made using Syngas and Natural Gas

Methanol manufacturing begins with the creation of syngas. To generate methanol, carbon monoxide and hydrogen must react over a catalyst such as a combination of copper and zinc oxides under high pressure and moderate temperatures.

Industrial Applications of Methanol

• Methanol is utilised in a variety of chemical processes as a feedstock for the synthesis of chemicals such as formaldehyde and acetic acid, which are subsequently used to create commodities such as foams, solvents, adhesives, windscreen washer fluid and plywood sub floors. Methanol is a solvent that is utilised in research labs and manufacturing enterprises. It is used to produce formaldehyde, which is then utilised to manufacture products like plastic, paint, and explosives. It is also used as a solvent in the production of hormones, cholesterol, streptomycin, and vitamins. It is also utilised in spray treatments for frosted door locks, car de-icers, and other frosty areas.
• Because of its chemical properties, it can be used as a key component of an antifreeze that prevents freezing in cleaning solutions. Furthermore, it prevents natural gas from flowing through pipelines, especially in cold-weather facilities.
• Methanol is commonly employed as a fuel source in the automobile sector, increasing vehicle efficiency while increasing speed and power. It is also an ideal transportation fuel due to its many physical properties, including being commercially viable and meeting clean air law regulations.
• Methanol is a clean-burning energy source: The vast bulk of the methanol produced is used in energy-related initiatives. It is used as a liquid fuel to power trucks, ships, automobiles, buses, and other modes of transportation all over the world. The fuel is less expensive and cleaner-burning than other traditional fuels since it can minimise pollutants from engines used in ships and cars, such as nitrogen oxides, sulphur oxides, and particulate matter. These emissions are responsible for poor air quality. It can contribute to a more sustainable society because it is manufactured on a large-scale using fossil fuels such as coal and natural gas as well as renewable resources like biomass, municipal waste, and recycled carbon dioxide.

Major Players in the Market of Methanol

• Yankuang Group
• Proman AG
• Ar-Razi Saudi Methanol Co. (SABIC)
• Sichuan Lutianhua Co., Ltd.
• Zagros Petrochemical Co.
• Methanex Corporation

Methanol Price Trend and Forecast

North America

Methanol prices in North America have fallen in recent months as a result of negative market sentiments and limited buying activity in the region.

Methanol prices fell with a weak market attitude as a result of lower feedstock natural gas prices and increased methanol production cost. As Methanol supply increased among firms, customers began to purchase the product based on their requirements.

The market for methanol and its derivatives is aided by the lag in energy and naphtha prices. Methanol exports from the United States to South Korea and Europe fell as a result of lower demand for the extra supplies.

APAC

Currently, the price of methanol in China is rising, which has been accompanied by an uncertain market outlook.

Unsteady regional demand in prior months has prevented price rises from occuring for the full month. With uncertain trading, downstream Formaldehyde and Formic Acid demand for methanol fell.

Methanol prices in India showed poor pricing trends, good product supply, and shaky benchmark futures, which delayed price movement. In order to avoid the establishment of further inventories, producers must lower their prices in reaction to methanol shipments arriving from Venezuela and Iran in the coming weeks.

Europe

Methanol is currently less expensive in Germany than it was previously. As they continued to trade methanol, the producers observed quite substantial levels of inventories.

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German methanol prices fell as a result of ample product availability and a poor market outlook. Saudi Arabia is still having difficulty exporting methanol to China due to insufficient product supplies at ports and downstream businesses.

The main driver of the price decline was still the probable effects of the recession in an environment with high energy prices. Natural gas prices, like benchmark futures, have been falling in the feedstock market.

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