Global ethylene capacity to reach 162 mln tons by 2012

26-May-11

Due to new accommodations and scheduled construction of new plants, global ethylene capacity is expected to outrun the demand growth and reach the mark of 162 mln tons by 2012, as per Merchant Research & Consulting, Ltd. The geographical demand supply dynamics are anticipated to change on account of large capacity addition currently in progress in the Middle East and China. During next few years over 28 mln tons of new capacities are planned to be added in Middle East and China. This will result in significant downturn of developed regions share (North America and Europe). The augmentation of capacity in the Middle East is expected to be disastrous for liquids-based producers, forcing them to pull down the shutters, possible bankruptcy or government rescue. Most likely to being under pressure from new world scale plants are ageing facilities. The older crackers are likely to be shut down over higher variable costs and feedstock costs.