By OGJ editors
HOUSTON, Nov. 12 -- The future bodes better for methanol consumers than for methanol producers, said the Houston-based Chemical Market Associates Inc. (CMAI) in its 2003 World Methanol Cost Study.
"The high methanol market prices of 2003 are beginning to soften," and prices probably will continue downward while new methanol production capacity is added during the next several years, CMAI said.
At least 12 million tonnes of new capacity is expected, beginning in 2004 and resulting in "a significant amount of overcapacity" by 2007, CMAI said.
Three new plants are scheduled for South America, and four plants are scheduled in the Middle East. These facilities are expected to be among the lowest production cost units in the world, CMAI said.
