Methanol is a clear liquid chemical used in several daily used products, including plastics, paints, cosmetics, and fuels. It is also an energy resource used in the marine, automotive, and electricity sectors and an emerging renewable energy resource. Methanol is a clean-burning, biodegradable fuel. Additionally, methanol’s environmental and economic advantages make it an attractive alternative fuel for vehicles and ships, cooking food, and heating homes. Methanol is also used as feedstock for the production of chemicals, such as formaldehyde, dimethyl ether, methyl tert-butyl ether, and acetic acid, used for producing foams, solvents, adhesives, plywood subfloors, and windshield washer fluid.
More than 80% of the methanol produced in North America and Europe is produced from natural gas, which is obtained by drilling shale and other sedimentary rocks under high pressure using hydraulic fracturing technology.
The global methanol market was valued at ~USD 33 billion in 2020 and it is expected to grow at a CAGR of 5% from 2021 to 2027 majorly due to increasing consumption of methanol for the production of dimethyl ether and Methyl tert-butyl ether (MTBE), utilized as the alternatives for gasoline. The formaldehyde segment is expected to remain the largest methanol derivative segment with more than 30% market share during the forecast period.
APAC is leading the global methanol Industry with more than 60% market share in 2020. China accounted for around 70% of the total methanol production in the region. Other Northeast Asian countries cumulatively accounted for more than 54% of the global capacity in 2020. China is also the largest consumer of methanol fuel and has numerous provinces developing fuel standards ranging from M5 (95% gasoline and 5% methanol) to M100.
Natural gas is used as feedstock and it is the most important cost component of methanol production accounted for more than 80% of the overall cost of production. The uncertain demand and supply of feedstock coupled with limited alternatives for the product have resulted in significant price changes in the last few years. Fixed costs including labor, overheads, and maintenance hold less than 10% share in overall methanol production cost.
Grab your copy, or request for a free sample of the “Methanol Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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