Home / Knowledge / News / Textiles / Naphtha crackers to face margin pressures
Naphtha crackers to face margin pressures
Oct '10
As a lot of new cracker capacities are being set up in China and the Middle-East in the current and next year, experts are of the opinion that, margins of these ethylene producers may be slashed in the coming years.

The naphtha crackers operate on a profit margin of around US $150-155 / ton, currently which had gone up to $240-250 / ton, when the naphtha cracker of Formosa had gone off-stream in July, due to which supplies were reduced.

It is expected that these profits will plunge to below $100 per ton, once the new Asian ethylene capacities are brought on-stream in the current and next year.

For instance in the past 12 months alone, China has activated three ethylene plants with a capacity of one million tons each and according to government reports, ethylene output touched a record 9.25 million tons in August.

The capacity boost in recent times by China has led to lower imports by the country and a further increase in its ethylene output, could spell trouble for ethylene producers in South Korea and Taiwan, which export a major portion of their production to China.

According to the China Petroleum and Chemical Industry Association, the annual ethylene capacity may increase by 56 percent to 23 million tons by 2015 and in the process reduce import dependency from 55 percent to 30 percent.

This is clearly reflected from the fact that, ethylene imports plunged by 31 percent to 64,144 tons in August, when compared with the same month of the previous year.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Silvia Venturini Fendi
Fendi s.r.l

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

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search