Industry Report

Feedstock | Jun 2020

India Methanol Market: Plant Capacity, Production, Operating Efficiency, Technology/Process, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030

Format: pdf

Pages: 62

Methanol demand in India is grew at a CAGR of 7.15% during 2015-2019 and is projected to grow at a healthy CAGR during the forecast period. Methanol end use segments are slightly different in India from the rest of the world. Methanol (also called Methyl Alcohol) has been increasingly used for manufacturing several downstream derivatives such as formaldehyde, Methyl Tertiary-Butyl Ether (MTBE), Acetic Acid, Methyl amines and Chloromethane etc. Production of Formaldehyde is one of the major Methanol applications and its segmental share is expected to increase tremendously in the coming years. Formaldehyde is added to adhesives used in the wood industry, such as plywood, particle board and laminates. Rising demand for Formaldehyde resins which are primarily used in country’s flexible packaging sector which has been aggressively growing at the rate of 22-25% per annum, will further escalate the Methanol demand in the forecast period. In addition, Methanol plays an essential role in the country’s pharmaceutical sector. Increasing Methanol demand for niche applications in India’s rapidly expanding pharmaceutical industry will further trigger the growth of Methanol market in India. 
 
Since Methanol burns efficiently in all internal combustion engines, and is a cleaner fuel that releases no particulate matter and almost zero SOX and NOX emissions (Near Zero Pollution), the former can serve as an excellent fuel and has the potential to replace both diesel and petrol in transport sector. Moreover, blend of Methanol & Dimethyl Ether (DME) with LPG can be used in place of present-day diesel for running large buses and trucks. 
 
Methanol Economy program initiated by NITI Aayog, an Indian Government body aimed at achieving sustainable development goals, is aimed at reducing country’s oil import bill by 15% by 2030; reducing greenhouse gas (GHG) emissions & converting Indian coal reserves and municipal solid waste into methanol will further propel the Methanol market during the forecast period. Bureau of Indian Standards has also notified blending of LPG with 20% DME (a derivative of Methanol) and notification for M-15, M-85, M-100 blends has been issued by Ministry of Transport. These factors are likely to give a strong boost to the demand for Methanol from the fuel additives sector.
However, COVID-19 outbreak rendered an unprecedented slump in the fuel demand as transportation and logistics remained hit due lockdown measures taken to contain the virus spread. Reduced operations at plywood and formaldehyde sectors due to lockdown restrictions led to significant losses to the India Methanol Industry. This was further backed by hindered operations at Kandla and Mumbai due to lack of manpower and tanker trucks, which eventually led to rising Methanol inventories on ports. These factors directly hammered Methanol prices which recorded several years low in Q4 FY20. However, with ease in lockdown restrictions and resuming operations in the downstream industries, the domestic Methanol players are expecting to regain the incurred losses and witness a positive revision in bulk prices. 
 
Years Considered for this Report:
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030
 
Objective of the Study:
• The primary objective of the study was to evaluate and forecast Methanol capacity, production, demand, inventory, and demand – supply gap in India.
• To categorize Methanol demand based on application, end use, grade, source, purity, region and sales channel.
• To study trade dynamics and company share in India Methanol market.
• To identify major customers of Methanol in India.
• To evaluate and forecast Methanol pricing by grade in India Methanol market.
• To identify and profile major companies operating in India Methanol market.
• To identify major news, deals and expansion plans in India Methanol market.
 
About 90 per cent of India’s Methanol requirement is met through imports, prime reason being cheaper import prices over domestic manufacturing cost. India imports 99% of its methanol from Iran and Saudi Arabia. Some of the major players operating in the Indian Methanol market are– Gujarat Narmada Valley Fertilizer & Chemicals limited, Deepak Fertilizers, Rashtriya Chemicals and Fertilizers, Assam Petrochemicals and National Fertilizers Limited. Saudi Arabia Basic Industries Corporation (SABIC), Zagros Petrohemical Co., Kharg Petrochemical, Marjan Petrochemical, Fanavaran Petrochemical etc. are some of Middle Eastern players operating in the India Methanol market.
 
Due to its heavy reliance on imports, Methanol prices in India are directly influenced by the international trends. In India, Methanol is mostly produced from natural gas and hence prices of domestic Methanol vary with Natural gas values. Hit by the pandemic woes, Methanol prices plunged to record breaking lows in Q4FY20 between $160-156 per MT CFR India, tracing the plummeting crude oil. In FY20, Methanol prices were assessed at USD XXX per MT on bulk contract basis. 
 
To extract data for India Methanol market, primary research surveys were conducted with Methanol manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for India Methanol market over the coming years.
 
ChemAnalyst calculated Methanol demand in India by analyzing the historical data and demand forecast was carried out considering the end use industries growth. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
 
Key Target Audience:
• Methanol manufacturers and other stakeholders
• Organizations, forums and alliances related to Methanol distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
 
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Methanol manufacturers, distributors and policy makers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
 
Report Scope:
In this report, the India Methanol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
 
Market, by Application
Formaldehyde, Acetic Acid, MTO/CTO/MTP, MTBE/DME/ DMT, Other Applications
Market, by End Use
Packaging, Adhesives, Fuel and Fuel Additives, Solvents, Others
Market, by Sales Channel
Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region
North, West, East and South

 

Competitive Landscape
ChemAnalyst offers detailed analysis of major players including basic company details, Segmental/product information, financial matrices, growth strategies, expansion plans, collaborations, SWOT analysis etc.to give a comprehensive and meaningful insights on the respective product market.
 
Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs. 
 
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