...Increasing Methanol Applications Methanol is a clear liquid petrochemical that is primarily produced from natural gas, although it can also be produced from coal (mainly in China). It is used in the production of formaldehyde, acetic acid and olefins, which are building blocks for many common chemical products. Outside of these more traditional uses, methanol is used as a substitute for gasoline and has found a growing demand source in fuel blending applications, particularly in China, which has implemented standards for methanol fuel. Derivatives such as methyl tertiary-butyl ether (MTBE) and dimethyl ether (DME) can be blended with gasoline to reduce pollution and increase efficiency or, in the case of DME, can replace diesel fuel. Short-Term Pricing Pressure Expected To Continue Fitch Ratings expects the recovery from currently depressed methanol prices to be muted in the near term due to the agency's expectations for continued low crude oil and natural gas prices. Declining fuel prices...
