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

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sonam & Paras Modi

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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:
June 2017

June 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