This report covers the present scenario and the growth prospects of the global ethylene market for the period 2014-2018.
The global ethylene market is expected to see major changes primarily driven by feedstock cost trends and sharply diverging consumption growth among different geographic regions. China continues to dominate the ethylene market both in terms of supply and demand as the country tries to achieve self-sufficiency especially at the ethylene derivative level.
This report, Global Ethylene Market 2014-2018, highlights the present scenario and growth prospects of the ethylene market. Considering the consumption of ethylene in various industries and sectors, the report covers APAC, North America, Middle East and ROW regions and their market landscape.
China dominates the market
Ethylene is considered to be a major building block of the petrochemical industry, and China plans to add 33 MTPA (million tons per annum) by 2017 and get ahead of North America, Middle East, and Iran by 3.5 MTPA. Furthermore, the China Petroleum and Chemical Industry Association expects that the ethylene market will register substantial growth, especially due to the recent government initiatives included in the 12th Five Year Plan (2011-2015). Despite this anticipated increase of output alongwith government’s initiatives for the market, it still fails to meet downstream demand of the country, for the self-sufficiency rate is expected to increase from 56% in 2010 to only 62% by 2020. However, the overall Asia Pacific region is expected to continue dominating the ethylene market in the future and fulfill more than a third of the worldwide demand.
Europe’s survival in the challenging ethylene market
Accounting for nearly 20% of global ethylene industry, Europe remains one of its largest markets. However, Europe’s ethylene industry is based on disadvantaged naphtha feedstock, causing the local producers to lose out to their competitors in USA and Middle East where crackers mainly use ethane. With the local producers continuously moving away to lighter feedstock to improve cost position, challenging conditions have led to closures of over two million tons, with demand falling over three million tons. Additionally, Russia’s current expansion plans for ethylene capacity is expected to affect exports reaching the continent by end of this decade, causing regional operating rates to fall below the global average. Despite the adverse conditions, market experts believe that ethylene capacity will continue to operate but at reduced rates, since the demand growth in the country will be limited.
Middle East also to show considerable growth
Middle East is expected to add 6 MTPA of capacity and see considerable growth of ethylene market in the region for its ability to supply plentiful feedstock. By 2020, the market is expected to be 16% of the global-based ethane capacity. However, market experts are seeing a shift towards mixed feeds (ethane and LPG) and naphtha cracker, which can affect the overall market growth of the region.
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