The world’s methanol market is shifting, with the growth of methanol-to-olefins in Asia dramatically impacting global dynamics.
Pricing dynamics are increasingly influenced by Asia and especially China. The growing amount of Chinese methanol-to-olefins (MTO) plants consume large quantities of methanol, as long as the price is right.
Europe in particular is ever more influenced by Asia. Contractual business dominates Europe’s market, given that it is so reliant on imports, receiving well over half its annual needs from regions like the Middle East, Central America and Russia. Global changes are an influence and boosted domestic capacity is s possibility.
Additional capacity expected in the US, and China’s growing MTO needs, are also factors to consider in the global marketplace for 2017 onwards.