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Predictions for global and major **methanol demand from 2008 to 2010: Global methanol demand is set to continue growing at a rapid pace in the coming years, with many authoritative agencies estimating that this growth rate will remain around 5.6%. Among them, the demand for methyl methacrylate (MMA) is growing at a rate of 4.7% per year, while the demand for acetic acid is increasing at 6.4% per year; this includes new uses such as direct use as fuel (excluding methyl tert-butyl ether (MTBE)). Furthermore, the demand for formaldehyde, which is the main use of methanol, will grow at a rate of 3.2% per year. In 2006, the world’s total demand for methanol reached 36.8 million tons. At an average annual growth rate of 5.6%, we estimate that global methanol consumption will reach 45.2 million tons by 2010. See Figures 3-6 below for the global methanol market demand and its growth trends in the coming years. In the United States, the growth in methanol demand slowed down in 2007, primarily due to the sluggish U.S. housing market, which affected the demand for engineered wood products – the main end-use sector for formaldehyde. Thus, the decline in demand for formaldehyde also impacted the market consumption of methanol. Furthermore, demand for MTBE in the United States will come to an end in 2008; although there will still be demand for it in non-fuel applications, the growth rate of market demand for methanol will be very limited in the future as the U.S. economy remains weak. Although North America is no longer the largest market for methanol, its market remains large. In the coming years, Europe will still rely on imports of methanol, but the volume will be less than that in Asia-Pacific. In the future, due to the reduction in MTBE production, demand for methanol in Europe will experience negative growth. Formaldehyde has always been the main user of methanol in Europe, but in recent years the demand for methanol in biodiesel production has been increasing. In the short term, the demand for methanol from biodiesel could reach 1 million tons per year. Demand for methanol in South America/Latin America is expected to grow, driven primarily by biodiesel production. Refer to Chart 3-7 below, which shows the statistics and forecasts for methanol imports and exports in certain countries and regions around the world in 2010. Chart 3-7: Statistics and forecasts on methanol imports and exports for selected countries and regions in the world in 2010 (unit: 10,000 tons) / Region: 2005, 2010. United States: 28,635, 94; Canada: -91, -151; Central and South America: -460, -628; Western Europe: 4,114, 777; Eastern Europe: -158, -132; Middle East: -463, -697; Africa: -53, -54; Japan: 3,063, 94; Oceania: -84, -77. Source: Research Department of Beijing Huajing Tianzhong Economic Consulting Center