Despite the impact of the global economic slowdown and the continually high prices of oil and petroleum products, demand growth is notable in Asia, especially in China and India, according to a study by Japan's Minister of Economy, Trade and Industry.
As per the report, In terms of production, plans for new and additional facilities are expected to continue to be developed, mainly in the Middle East, China, and India. In addition, it is also expected that new and additional petrochemical plants in the U.S. will be developed specifically where shale gas is utilized as a raw material. The ratio of demand in Asia, particularly in China and India, to overall worldwide demand is growing. Thus, the influence of the Asian market on the worldwide market is increasing.
Regarding changes in the supply-demand balance of ethylene derivatives, it added an excess supply state is expected to continue and from 2014 the excess supply is expected to reach 5 million tons or more, due to the increases in excess supply in the Middle East as well as the increase in ethylene production capacity making use of shale gas in the U.S. As for the supply-demand balance of propylene derivatives, production capacity is expected to continue to increase in Asia and the Middle East and an excess supply situation is expected to persist, while demand strongly grows in China, India, and other regions.