Home / Knowledge / News / Textiles / Naphtha crackers to face margin pressures
Naphtha crackers to face margin pressures
27
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

Apparel/Garments | On 23rd Mar 2017

European & Asian apparel brands open EBO's in South Korea

Following the success of Japanese brand Uniqlo in the South Korean...

Apparel/Garments | On 23rd Mar 2017

Destination XL reports turnaround in Q4FY17 net income

For the three months ended January 28, 2017, omni channel retailer of ...

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kerem Durdag
Biovation II LLC

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

Sonam & Paras Modi
SVA

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Igor Chapurin
Chapurin

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

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

news category


Related Categories:
March 2017

March 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