Industrial experts expect that by 2010, global ethylene demand will take a huge leap, taking the consumption upto 30 million tons per year.
Among the ethylene consuming countries, China's demand for ethylene will increase by 50 percent from current level of 20 million tons per year. However over the same period, new ethylene production capacity in Middle East alone will be 16-21 million tons per year. China's new capacity will be as high as 12 million tons per year.
As the production pace of new capacity is faster than demand growth, global ethylene plant production rates will be reduced from current 95 percent to below 90 percent in 2010. It will bring greater pressures to profitability of manufacturers and the global ethylene market will turn weak from firm.
It is expected that world ethylene production will reach 155 million tons in 2010 with 39.5 million tons of new capacity, 83 percent of the new capacity will be concentrated in Asia-Pacific and Middle East.
Experts anticipate that ethylene industry will fall to its lowest point of production cycle in during 2011-2012 year due to excess production capacity.
Market express of ethylene prices on Feb 20
Asia region ethylene prices:
Ethylene, CFR Northeast Asia, at US $1330-1340 per metric ton.
Ethylene, CFR Southeast Asia, at US $1270-1280 per metric ton.
Far East region ethylene prices:
Ethylene, FOB Korea, at US $1445 per metric ton.
Ethylene, FOB Japan, at US $1445 per metric ton.
Europe ethylene prices:
Ethylene, FD Northwest Europe, at Euro 957-961 per metric ton.
Ethylene, CIF Northwest Europe, at US $ 1375-1385 per metric ton.
Fibre2fashion News Desk - China
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