High-End and Green Fields Contribute to Methanol Demand Growth
China’s methanol consumption growth has slowed down against the background that China’s economy is in a new normal. In recent years, the cost advantage of CTO/MTO units have weakened with declines in oil prices, diversification of olefin raw materials and the policy of carbon neutral. Stricter policies have dampened enterprises’ investment interest and the development of traditional downstream industries. At present, China focuses on supporting the development of high-end manufacturing, biodegradable plastics and new energy fields. In such a context, what else potential demand can the methanol industry dig out?
CTO/MTO capacity growth throttled back amid oil price slump and diversification of olefin raw material.
Currently, the CTO/MTO industry which developed from 2010 consumes over 50% of the total methanol resources in China each year. The development of CTO/MTO industry is based on China’s energy structure which is rich in coal but poor in oil and gas. The operation of CTO/MTO units has met part of China’s demand for low-carbon olefin and realized the clean and efficient utilization of coal resources as well.
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