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Ethylene plants may operate at lower capacities in 2010

18
Jan '10
Industry experts predict that operating rates of most of the ethylene plants across the world will maintain at about 80 percent in the current year and may be even next year, though it will prove to be a very big challenge.

Experts are taking in to account the new production capacities that will come on-stream in the current year and aver that running a plant at lower capacity utilizations will ultimately squeeze profits of ethylene plants.

For crackers using naphtha as raw material, a strong rise in crude oil prices and a lower price of natural gas in the North American markets, could face a severe situation.

Crackers based on ethane as raw materials in the Middle East and North America will still maintain a competitive edge, as the spread between naphtha and ethane will remain around 8 cents -10 cents / lb (US $176 -220 per ton).

Fibre2fashion News Desk - India


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