Home / Knowledge / News / Textiles / Excess capacity may lead to bloodbath in ethylene industry
Excess capacity may lead to bloodbath in ethylene industry
Nov '09
As new ethylene plants in China, Taiwan, the Middle East and other parts of the world are gradually put into operation, ethylene supply in the international market is expected to be absolutely in excess.

According to the deliberations at a recent summit conference in China, this situation of over-capacity is expected to lead to a consolidation in the ethylene producing sector as well as amongst downstream consumers of ethylene.

Currently raw materials of ethylene are mainly derived from naphtha and ethane. Current international crude oil prices are ruling at a high level and developmental costs in the Middle East are lowest in the world, due to geological conditions and resource advantages.

All these factors have therefore; led to a rapid expansion of the ethylene capacity in the Middle East region along with other countries like China and Taiwan, due to the huge demand for ethylene generated in the last few years.

As per the expansion and new capacity plans of ethylene producers in the Middle East, the annual capacity growth of ethylene is expected to be around 7-8 percent, far beyond demand growth projection of 3 percent, that too in normal economic conditions.

Demand growth for ethylene may be negative in 2009, due to global economic recession caused by the financial tsunami in September 2008 and the production capacity appears seriously superfluous, which will have significant implication on propylene, other multi-carbon products and their downstream derivatives markets in the future.

Excess capacity tends to lead to intense competition in the market and which will ultimately lead to a bloodbath amongst global ethylene industry.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Interviews View All

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search