Methanol Procurement Intelligence Is Expected To Expand At A CAGR Of 4.6% From 2023 to 2030Posted by rahul nikade on February 15th, 2024 Methanol Category - Procurement Intelligence The methanol category is expected to grow at a CAGR of 4.6% from 2023 to 2030. Methanol is used as a fuel source due to its blending capacity and high-octane rating. Methanol, alternatively referred to as methyl alcohol or wood alcohol, is a transparent, lightweight, volatile, and combustible liquid possessing an aroma akin to ethanol or alcoholic beverages. It stands as one of the widely employed industrial chemicals, serving as a precursor in the manufacturing processes of formaldehyde, acetic acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), biodiesels, olefins, and various other compounds. Methanol finds extensive application in the production of biodiesel, a biodegradable and environmentally safe alternative that generates fewer air pollutants compared to other fuels. Anticipated growth in the market is expected through government initiatives aimed at reducing the global carbon footprint. The category also plays a crucial role in olefins generation through the Methanol-to-Olefins (MTO) process, including key components like ethylene and propylene. These olefins have diverse applications, contributing to the production of synthetic rubber, synthetic plastic, pharmaceuticals, and textile dyes. Additionally, certain ethylene derivatives are employed in the manufacturing of ethylene glycol, vinyl chloride monomer, and vinyl acetate monomer, which are essential for various end-use industries such as paints, coatings, and adhesives. Rising demand for these products is expected to drive the consumption of methanol in manufacturing them, which is indirectly anticipated to boost the category growth. Order your copy of the Methanol category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis Growing environmental concerns and the push for sustainable practices have led to an increased interest in green methanol production. Green methanol is produced from renewable sources, such as biomass, municipal solid waste, or captured carbon dioxide. This aligns with global efforts to reduce carbon emissions and promote a circular economy. The methanol category is fragmented, with the presence of various players such as SABIC, Methanex, Proman, and OCI Global. These companies continuously focus on increasing their production capacity to meet the demand from the end-use industry, entering mergers and acquisitions, and entering into agreements for production in new locations to sustain in the market. For instance, in February 2023, Celanese and Mitsui & Co. reached a consensus to extend their ongoing Fairway Methanol LLC joint venture, operating at Celanese’s Clear Lake U.S. facility, and extend the ownership till 2045. In the upcoming months in 2023, the Fairway Methanol LLC joint venture anticipates finalizing a cost-effective capacity expansion to 1.62 million metric tons. Additionally, later in 2023, the venture will commence recycled carbon dioxide (CO2) as an alternative feedstock for methanol production. Methanol Sourcing Intelligence Highlights
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