Methanol
Overview
The global methanol industry has suffered in recent years. First COVID-19, then the Russia-Ukraine conflict, followed by global inflation, stagnation and downward revised GDP forecasts. It is hoped 2022/2023 will be the performance valley for the sector, looking toward an improved—but still slowed—outlook. The huge China methanol appetite has slowed. The MTO sector sees minimal growth ahead. The rest of the world will have to generate increased demand, but with much of this sector tied to GDP performance, the outlook here too is reserved. New capacity continues to define the landscape, with several new units expected in the coming months.
Pricing is spiking in Q4’23 due to a myriad of methanol production outages around the world. Production will return and prices weaken some. However, the outlook is for the olefins and olefin derivative sectors to finally end their respective down cycles. Olefin/derivative prices are expected to improve, driving higher MTO methanol affordability values. The rest of the methanol industry is expected to follow China’s MTO methanol price strength.
Argus’ experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest methanol news
EU plastics law clears parliament with mixed reaction
EU plastics law clears parliament with mixed reaction
Brussels, 24 April (Argus) — The European Parliament has adopted the EU's Packaging and Packaging Waste Regulation (PPWR) that requires reductions in plastics and other packaging, ahead of formal approval by the bloc's ministers. The regulation had been provisionally agreed between EU diplomats in March. The regulation, adopted with 476 votes in favor and 129 opposed, obliges packaging reductions of 5pc by 2030, 10pc by 2035 and 15pc by 2040. EU countries must specifically cut plastic packaging waste. Starting on 1 January 2030, the regulation also bans single-use plastic packaging for unprocessed fresh fruit and vegetables, and for foods and beverages filled and consumed in cafés and restaurants. Other bans from 2030 affect individual portions for condiments, sauces, creamers and sugar, as well as very lightweight plastic carrier bags. The rules require all packaging to be recyclable, with exemptions for lightweight wood, cork, textile, rubber, ceramic, porcelain and wax. Plastics Europe's managing director Virginia Janssens said the adopted text is "ambitious" and needs practical implementation. "We need a careful review of the impact of the reuse targets and affected formats, especially in transport packaging," Janssens said. The plastics manufacturers' association said a lack of material neutrality undermined the aims of the PPWR to reduce packaging waste. European paper industry association Cepi pointed to a phase out of "fossil-based materials" and called for timely compliance with the new regulation. Cepi urged EU member states to endorse the agreement when voting. European farmers association Copa-Cogeca noted "discriminatory" treatment for the fruit and vegetable sector, adding that the European Commission, EU member states and parliament have so far "ignored" arguments to amend the text to exempt single-use packaging for fresh fruit and vegetables. EU ministers also voted on an objection approved last week by the EU environment committee regarding mass balance accounting rules, which did not get the majority needed to be confirmed. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brightmark to build Georgia pyrolysis plant
Brightmark to build Georgia pyrolysis plant
Houston, 24 April (Argus) — Chemical recycler Brightmark plans to build a 400,00t/yr pyrolysis plant in Thomaston, Georgia, two years after the company terminated its plan to build a similar plant in a nearby Georgia community. Pyrolysis is a form of chemical recycling that breaks down used plastic into pyrolysis oil, which can then be reprocessed into new plastics at virgin polymers facilities. The 2.5mn ft² plant will cost $950mn, including infrastructure such as roads and rail access, Brightmark said. A previous plan to build a chemical recycling facility in Macon, Georgia, ended in 2022 after Mayor Lester Miller withdrew his support, citing "long-term safety concerns" from Brightmark's "unproven process". The company finished construction of its first chemical recycling plant in Ashley, Indiana, in 2022. Brightmark said it has recycled 2,000t of plastic waste so far at its Indiana plant, well behind its anticipated volume of 100,000 t/yr. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TUI Cruises receives methanol-ready ship
TUI Cruises receives methanol-ready ship
New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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