Methanol Procurement Intelligence 2030 : Methanol Category To Grow Substantially At A CAGR Of 4.6%Posted by rahul nikade on May 9th, 2024 Methanol Category - Procurement Intelligence In this methanol procurement intelligence report, we have estimated the pricing of the key cost components. Raw material (natural gas, coal), labor, energy, equipment costs, transportation, and others are some of the important cost components in the category. Other costs include repair and maintenance, legal, and packaging costs. The fluctuation in raw material prices can highly impact methanol prices. Methanol is commonly produced from natural gas (methane), but it can also be derived from other feedstocks such as coal or biomass. The cost of acquiring these feedstocks is a significant factor. Skilled and unskilled labor is required for the operation and maintenance of the production facility. Labor costs include benefits and training expenses. Compliance with environmental and safety regulations may involve additional costs for implementing pollution control measures, monitoring systems, and ensuring compliance with local and international standards. The production cost of methanol derived from fossil fuels such as natural gas, and coal can range from USD 100 to USD 250 per ton. Regular maintenance and occasional repairs of equipment and infrastructure contribute to the operating costs. Costs associated with transporting raw materials to the production site and delivering the final product to consumers or distributors are part of the overall cost structure. In September 2023, global coal prices soared to an all-time high of around USD 443 per ton. Unprecedented price levels were driven by a surge in coal demand and a supply shortage. Escalating gas prices prompted numerous countries to transition to coal-fired generation, further boosting the demand for coal-a crucial feedstock in methanol production. 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 Operational Capabilities - Methanol
Functional Capabilities - Methanol By End Use
Others
Rate Benchmarking When analyzing rate benchmarking of methanol, the type of the product, raw material prices, and location play an important role. In August 2023, the methanol prices in the U.S. declined to USD 524/ton due to restricted transactions and limited fundamentals, which had a negative impact on the category. Throughout Q3 of 2023, the prices of methanol in the U.S. witnessed a downtrend due to slow market fundamentals as compared to the previous quarter of the year. In October 2023, the prices reached USD 517/metric ton. Similarly, the decline in prices was also observed in China between August 2023 and September 2023 due to adequate inventory levels among the storage units and discounts on bulk purchases offered by the players. In September 2023, the prices in China declined to USD 306/ton CFR Qingdao. At the end of Q3 2023, suppliers raised their methanol offer with the hope of a recovery in demand. In October 2023, the prices were around USD 281/metric ton. In the third quarter of 2023, the prices of methanol in Saudi Arabia exhibited a downward trend, impacted by limited cost support stemming from constraints in the upstream coal and natural gas markets. This led to an increase in methanol supply in the Saudi Arabian market, while buyers were resisting making bulk purchases. To stimulate sales and reduce existing inventories, discounts and special offers were introduced for premium purchases. In August 2023, the Saudi Arabia methanol price was around USD 240/ton FOB AI Jubail. Supplier Newsletter In November 2022, Petronas announced to double its methanol production in a new facility situated in Bintulu, Malaysia. The increase in production will add 1.75 million tons of methanol to its existing 2.4 million tons production produced annually by the company. This will help the company to meet the increasing consumer needs and serve more new customers. In March 2022, Proman and A.P. Moller-Maersk (Maersk) have recently entered a fresh collaboration to explore and create sustainable solutions for the supply of green methanol for Maersk's upcoming fleet of methanol-powered container vessels. Under this newly established partnership, Proman will provide Maersk with an annual supply of 100,000 to 150,000 tons of green methanol. In January 2022, The Ibn Sina plant of the National Methanol Company in Saudi Arabia, a partnership between SABIC, Duke Energy, and Celanese, became the first company in the Middle East to be certified for making methanol in an eco-friendly way by the International Sustainability and Carbon Certification. The plant can create methanol using captured CO2, offering a sustainable option for companies in the Middle East to meet market demands. List of Key Suppliers
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