Global ethylene consumption to grow at faster than predictions

08-Sep-10

Historically, the global petrochemical industry has witnessed very few upheavals that combine effects of energy volatility and depressed downstream demand. Because of the unprecedented effects of the economic downturn in 2009, SRI Consulting’s (SRIC) World Petrochemicals Program (WP) has announced the 2010 Midyear Update of the Ethylene Segment, showing that world ethylene growth during 2009 through 2011 will increase 17% faster than estimated in the original 2010 scenario. Demand for all products in most countries increased during Q4-09 through Q2-2010–at a faster rate than the original forecast. This was due to a surge in economic growth combined with some inventory rebuilding in the supply chains. However, a slowdown in the world’s economy is threatening growth in H2-2010, mainly due to the tightening of credit in China, slower than anticipated improvement of employment in developed economies, and reduced government stimulus spending throughout the world. Ed Gartner, Director of the World Petrochemicals Program commented, “The stronger ethylene growth profile in 2009/2010 along with recently identified delays of new Asian and Middle Eastern capacity will result in world operating rates running higher than in the original scenario.”