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Imports of ethylene projected to fall
Feb '09
Some market experts are of the opinion that imports of ethylene by China is expected to gradually fall. China is the biggest ethylene importing country in Asia and with new ethylene capacities expected to go on-stream in China by the second quarter of 2009; import dependence is projected to decrease.

According to statistics, China imported 721,204 tons of ethylene in 2008, up 41 percent from 509,821 tons imported in 2007. But with the slowdown witnessed in the textile sector, Asian naphtha crackers may encounter a very difficult situation in the future, which will force the industry to consider reduction in capacity utilization.

In the second half of 2008, a lot of ethylene operating capacities was reduced due to slackening of demand from the downstream sectors. But now since the last few weeks these plants are slowly increasing their operating rates to meet growing demand and are currently operating at between 85-100 percent.

But with the addition of new capacities in China and the Middle East, there is projected to be an over supply of ethylene in the global markets, which will actually push the prices of the raw material further down, to the delight of the downstream users of ethylene.

Fibre2fashion News Desk - China

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