Panuswee Dwivedi, Analyst, ADI Analytics, discussed the implications of slowing global methanol growth for the U.S. methanol industry at the 2019 ADI Forum. She pointed out that while the global olefins market continues to expand, its growth rate has decreased from 6% to 4%, largely due to the high costs associated with the methanol-to-olefins (MTO) process, prompting a shift towards alternative olefin production methods like propane dehydrogenation and catalytic reforming of naphtha. Simultaneously, methanol demand growth has also slightly declined from 6% to 4.2%, although MTO and fuel blending remain significant demand drivers. With a substantial 9.4 million tons of new methanol capacity anticipated, the industry is undergoing a notable transformation. The discussion highlighted the reasons behind MTO’s decreasing favor, alternative routes for olefin production, and the broader impact of this new capacity on market dynamics.
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