Ethylene supply feedstock cost advantages to increase U.S. polyethylene export volumes

04-Jan-17

The significant U.S. ethylene supply and U.S. ethylene feedstock cost advantages will increase U.S. polyethylene production beyond domestic demand and support export volumes until 2020. Excess North American polyethylene production available for export will be 6-9 billion pounds within the 2016-2020 time frame, assuming 75% of the announced polyethylene projects are actually built and commissioned by 2020, as per Research and Markets.

The logistics infrastructure to transport polyethylene internationally in containers is well established and investments to support significant increase in polyethylene container exports from the U.S. focus on shipping container, product packaging, and container loading capacity improvements. International trade of polyethylene has nearly doubled from 26 million tons in 2001 to 50 million tons in 2014. Over the last five years, global trade volume has expanded on average by 5% pa but showed only a very marginal growth in 2014. Expansions in production capacity and cost competitiveness have established the Middle East as a leading polyethylene export region, with annual export volumes nearly four times more than the volume of the next highest exporting regions.

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