Output of ethylene has witnessed double digit growth this fiscal at Asia's largest refiner by capacity - China Petroleum & Chemical Corp. (Sinopec), along with refining a record volume of crude oil last year. Though Beijing continues to regulate domestic selling prices of petrochemical products, the country's strong demand for fuel and chemical products has pushed Sinopec to increase production.
In 2006, Sinopec produced 6.16 million tons of ethylene, up 15.87%, beating its guidance of 5.9 million tons.China imports 50% of the ethylene it needs, as demand growth has been outpacing domestic output capacity expansion. The petrochemical upcycle is expected to continue until 2008. Additional new capacity will come on-stream in the Middle East from 2008 onwards, which may then cut into the profit margins of chemical products.
18-Jan-07 
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