02 October 2011 16:00 [Source: ICIS news]
BERLIN (ICIS)--Prospects of poor growth of methanol markets in Europe and the ?xml:namespace>
Many participants, particularly on the buyer side, are convinced that the weak global economy has caught up with the methanol market and predict declining demand as the fourth quarter progresses.
Sellers, and indeed some buyers, dismiss these negative expectations as highly unlikely and expect methanol demand to grow in line with the growth of GDP in Europe and the
“Europe is not contracting, it’s at least stable,” the producer said on the sidelines of the 45th annual European Petrochemical Association meeting in
However, even if the European market was to shrink, Chinese growth would “completely overcompensate,” he said.
The producer said some of its smaller customers have begun to reduce their inventories and had taken less material during September than usual. But it stressed that bulk orders were unaffected and, furthermore, it believes this destocking to be the result of cautious behaviour and not demand destruction.
“The psychology is worse than the actual business. Then next few weeks will tell the truth about demand.”
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