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
Dockworkers end US port strike
Dockworkers end US port strike
Houston, 3 October (Argus) — US dockworkers have ended a port strike that had shut container terminals from Maine to Texas, after their union late Thursday struck a tentative agreement on wages. The International Longshoremen's Association (ILA) has agreed to extend its contract with the United States Maritime Alliance (USMX) until 15 January to provide time for negotiating the remaining outstanding issues, the ILA said in a statement. The USMX includes containership owners, terminal operators and port associations. "Effective immediately, all current job actions will cease and all work covered by the master contract will resume," the ILA said. The strike, which started on 1 October, had forced containership operators to queue up outside US east coast ports. Major container shipping agencies such as Maersk had initiated surcharges for US east coast and Gulf coast-bound containers later in October. By Jack Kaskey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Argent to start production at new glycerine refinery
Argent to start production at new glycerine refinery
London, 3 October (Argus) — Biofuels producer Argent Energy is expected to commence production at its new glycerine refinery in early October, a source told Argus . The new Argent refinery, which is located at its Port of Amsterdam site, is Europe's largest facility dedicated to producing bio-based, technical-grade refined glycerine. The facility has a production capacity of 50,000 t/yr and will upgrade crude glycerine into 99.7pc technical-grade glycerine to supply the European chemical market, the company said. Technical-grade refined glycerine can be used in the production of epichlorohydrin, polyether polyol and anti-freeze, among other applications. Additionally, its use as a feedstock for biofuels generation, such as marine fuels, is being studied as it could offer a cheaper alternative to LNG and distillates. The Netherlands has the largest marine fuel sector in the EU. "Our entrance into the chemical market is driven by our goal to maximise product value and support the circular economy. By upgrading glycerine from our processes into a technical-grade product, we're giving the chemical industry a bio-based option they can confidently use in their own products," Argent Energy chief executive Louise Calviou said. The glycerine produced in Argent's new facility will be made via the biodiesel production route, with the product being certified under International Sustainability and Carbon Certification (ISCC) guidelines. Argent Energy currently has a capacity of 190,000 t/yr for waste-based biodiesel, with sites in Amsterdam and northwest England. The company plans to soon triple biofuel production at its Amsterdam site alone. By George Barsted and Carolina A. Palma Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
California textile recovery bill signed into law
California textile recovery bill signed into law
Houston, 2 October (Argus) — California governor Gavin Newsom (D) signed a bill into law on 28 September that will establish the US's first extended producer responsibility (EPR) textile recycling program. The law (SB 707) requires producers of apparel or textile articles in California to create a producer responsibility organization (PRO) that will handle and recycle textiles and apparel across the state, under the supervision of California's Department of Resources Recycling and Recovery (CalRecycle). SB 707 is the first EPR system for clothing that has passed in the US and leaves a lot of leeway to the PRO and CalRecycle in implementing the law. It provides relatively few details about how the EPR program will work and does not set any minimum recycled targets. The law was written by California State Senator Josh Newman (D) and was supported by textile industry participants and recyclers. "To achieve (our corporate goal of becoming a circular business by 2030), we must partner with policymakers to support efforts in creating more circular systems for textiles and other products," IKEA US Sustainability Manager Mardi Ditze said following the bill's passage. "We applaud Senator Newman for leading a collaborative process with industry stakeholders on SB 707 and support efforts to increase textile circularity in California and across the US." The PRO is required to provide free textile recycling drop-off centers for residents of California, and CalRecycle is authorized to impose monetary penalties against producers for violations of the program's requirements under the bill. Producers will be expected to join an approved PRO by 1 July 2026, and the EPR system is planned to begin enforcement on 1 July 2030. By Hadley Medlock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Unilateral action can tackle plastic waste: OECD
Unilateral action can tackle plastic waste: OECD
London, 2 October (Argus) — Only stringent global measures addressing production and waste management combined can come close to eliminating plastic leakage into the environment by 2040, a new OECD report says. The report — Policy Scenarios for Eliminating Plastic Pollution by 2040 — projects the impact of different policy measures, ranging from business as usual, through measures only aimed at boosting collection and recycling or only enacted in developed countries, up to global measures targeting both upstream production and downstream waste management. It concludes that global plastic production will grow by 69pc by 2040 — versus a 2020 baseline — if the current policy environment is maintained, whereas the recycling rate would only increase by around 5pc, resulting in a 50pc increase in the leakage of plastic into the environment. Combining measures aimed at curbing plastic demand — including production caps, development of re-use systems and increased design-for-recycling — with policies aimed at boosting collection and recycling of plastic waste could reduce virgin plastic production, boost recycling rates above 40pc and reduce leakage to near zero. In a scenario where OECD members enact measures across the supply chain while non-OECD nations focus on downstream measures, virgin plastic production would rise only slightly by 2040, from 2020, the report says. But it projects that there would still be more than 10mn t/yr of plastic waste leaking into the environment, compared with 20mn t in 2020. Furthermore, the report concludes that enacting measures across the supply chain will be the most cost-effective way of limiting the environmental impact of plastic waste. This is because upstream measures such as design-for-recycling will reduce the cost of improving collection and recycling, which will be higher in many non-OECD countries where existing waste management infrastructure is more limited. Global measures across the supply chain would cost 0.37pc of gross domestic product (GDP) in OECD countries and 0.62pc of GDP in non-OECD economies by 2040, the report projects, compared with over 0.5pc and nearly 1pc, respectively, if only downstream measures were implemented. "These costs exclude the avoided costs of inaction and should be considered in the context of vastly improved environmental outcomes", the report notes. Shaping the debate The release of the report comes ahead of the fifth and final scheduled round of UN negotiations to develop a binding global treaty to tackle plastic waste, which will begin in South Korea in November. In past sessions, there has been ongoing debate about the scope that the treaty should take. Some delegates, especially from countries with a reliance on plastic-producing industries, have so far favoured a focus on downstream measures and opposed caps on virgin plastic production. A recent change of tack from the US in support of production caps surprised many observers, but its impact on discussions will depend on how much leverage it is willing to use to convince others to follow suit. Discussions during the Intergovernmental Negotiating Committee on Plastic Pollution on 25 September in New York showed member countries are still far apart in terms of policy agreements, with frustration sometimes visible from a few diplomats about the lack of progress in certain areas. Negotiations up to this point indicate that achieving the OECD's ideal scenario for tackling plastic waste will be extremely challenging. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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