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Ethylene output likely to touch newer heights
Jan '08
Ethylene is considered to be one of the most essential products for both oil and chemical industry. The ethylene production of China exceeded 100 million tons in 2007, showing an increase of over 11 percent from the previous year.

The construction of ethylene project at Wuhan, the capital of Hubei Province, with a production capacity of 800000 tons a year was started some where near mid-December, last year.

So far, around seven large-scale ethylene plants with an output of 6.2 million tons are under construction, which is very exceptional in international markets. It is expected that after the completion of these, China's ethylene production will reach 18 million tons per year by 2010.

Although in recent years, domestic ethylene market saw rapid development. With booming production and sales, there are still some problems worth paying attention to. At present, all the naphtha, the raw materials for ethylene production, comes from oil, imports of which account for about half of domestic consumption.

In recent years, oil prices in the global market sky rocketed, and touched new heights in 2007. This in turn, increased the production costs of ethylene, and significantly reduced profit margins.

However, reducing world oil resources have become a source of concern for the industry experts.

FIbre2fashion News Desk - China

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