Home / Knowledge / News / Textiles / Excess capacity may lead to bloodbath in ethylene industry
Excess capacity may lead to bloodbath in ethylene industry
20
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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Mohammad Hassan
Biax Fiberfilm

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search