The world's ethylene production capacity will be s

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In 2010, the global ethylene production capacity will be surplus

Wuhan has made another great achievement in overcoming the world's difficulties in nano film material testing - "Hubei Engineering Laboratory for physical property testing technology of functional film materials" was listed and established in Wuhan future science and technology city. CEO simonlam of CSPC said at the 12th China chemical industry seminar of chemical weekly held in Shanghai recently, Despite the strong growth of ethylene demand in the Chinese market, a large number of new ethylene cracking units in China and the Middle East will be put into operation in the coming years, which will lead to excess supply in the global ethylene market. By 2010, the global ethylene unit operating rate will be reduced by 5 percentage points to below 90%

lam said that the next few years also pointed out the direction for the development of China's plastic granulator technology. The global ethylene demand will grow rapidly at an average annual rate of 6%. Before 2010, the global ethylene demand will increase by 30million tons/year. At present, China's ethylene demand is about 17million tons/year, which will increase by 50% in the next few years. In the same period, the Middle East plans to add 16million ~ 21million tons of ethylene per year, while China will add 12million tons per year. Excluding such factors, the global ethylene unit operating rate will drop by 5% to below 90% by 2010 due to the fact that the new production capacity is faster than the demand growth, which puts great pressure on the profitability of manufacturers

lam believes that the boom cycle of ethylene industry is coming to an end, but the specific time is still uncertain. The business cycle time of ethylene industry will depend on the demand growth and the production time of new capacity. If the production time is delayed, the business cycle will be prolonged, but it is only a matter of time

Lam pointed out that although China is planning to build a large number of ethylene cracking units, China's ethylene supply will still depend on imports. By 2010, about half of China's ethylene demand will still depend on imports. However, China's desire for ethylene demand is still insufficient to absorb the large amount of new capacity planned in China and the Middle East. This will force producers in the Middle East to seek ethylene sales markets in the West

with the continuous production of new capacity, the competition in the petrochemical industry will become increasingly fierce, and some small cracking units will be gradually eliminated. In order to win the competition, it is necessary to build a cracking unit with larger capacity and more efficiency, and it must be integrated with raw material production. CSPC started the 800000 T/a ethylene cracking unit and downstream derivative system in Daya Bay, China in March last year. The unit has the following functions:. The cracking unit can crack light and heavy naphtha, as well as condensate and light crude oil from Africa and the Middle East. CNOOC is currently building a new local refinery, which is expected to be put into operation in 2008

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