Ethylene is an important feedstock in the petrochemical industry. For the first time ever, the new market study "Ethylene Value Chain China" by Ceresana offers complete transparency on the current and future development of the entire ethylene industry in the People's Republic. Attention is given to various downstream products at various points of the value chain and final end applications.
Dynamic Market Development
Chinese demand for ethylene more than doubled between 2005 and 2013. Revenues generated with this product rose to about US$19 billion. Downstream processing industries are responsible for the notable increase: Manufacturers of the three polyethylene plastics HDPE, LLDPE and LDPE currently process more than 60% of the ethylene consumed in China. Other direct applications of ethylene include important chemicals such as ethylene dichloride, ethylene oxide and ethylbenzene.
Self-Sufficiency as Proclaimed Goal
China has to import crude oil. Since import prices rose considerably in past years, domestic producers are incurring problems in producing ethylene at competitive prices. Currently, China not only imports large amounts of ethylene, but also increasingly HDPE, LLDPE, LDPE as well as the PET pre-product ethylene glycol. In its five-year-plan, the Chinese government has included the target of increasing self-sufficiency regarding ethylene and its applications to more than 64% by 2015. In order to reach this target, additional naphtha crackers are to be opened. Also, utilization of China's extensive cheap coal resources in the manufacturing of chemical products is to be increased. China places considerable hope on CTO technology (coal to olefins).
Good Prospects for Ethylene oxide and Ethylbenzene
More than three quarters of ethylene oxide demand in China originates in the production of ethylene glycol, which in turn is mainly used to manufacture PET fibers. The second largest application for ethylene glycol is producing PET packaging, especially PET bottles. Consumption of ethylbenzene increases in accordance with Chinese demand for styrene, which is used for the production of various plastics. The highest growth rate is expected for the use in acrylonitrile-butadiene-styrene (ABS)/ styrene-acrylonitrile (SAN). This market is profiting enormously from growth in the electronics sector.
The Study in Brief:
Chapter 1 offers a complete overview over the Chinese ethylene market: Market data regarding revenues development, demand and production, existing and future capacities as well as trades are explained in detail.
Chapter 2 analyzes the market for derivatives of ethylene. Data on demand, revenues, prices, costs, production, trade and a list of manufacturers including capacities is provided for the most important applications. The various types of polyethylene are examined in more detail: HDPE, LDPE, and LLDPE. The value chain of ethylene dichloride (EDC) via vinyl chloride (VCM) to polyvinyl chloride (PVC) is illustrated. The chapter analyzes the market for ethylene oxide and downstream sectors such as ethylene glycol and non-ionic surfactants. The value chain ethylbenzene via styrene to applications like polystyrene (PS), expandable polystyrene (EPS), acrylonitrile-butadiene-styrene (ABS)/styrene acrylonitrile (SAN) and styrene butadiene rubber (SBR) is described. Chapter 3 offers a useful directory of producers within the ethylene value chain in China. The profiles are clearly arranged according to contact detailed, sales, profit, product range, production sites, and summary profile. Each profile also includes specific information about the value chain as well as current and future production capacities for ethylene and derivatives. Extensive profiles of 98 manufacturers are given, including BASF-YPC, China National Chemical, Fujian Refining & Petrochemical, Panjin Ethylene Industry, Petrochina, Shanghai Chlor-Alkali, Shanghai Secco, Shenhua Group and SINOPEC.
Ceresana (ceresana.com) is a leading international market research and consultancy company for the industrial sector and operates branch offices in Constance, Vienna and Hong Kong. For more than 10 years, it has been supplying several thousand customers from 55 countries with up-to-date market intelligence. Extensive market knowledge creates new prospects for strategic and operational decisions. Ceresana's clients profit from practical consulting services, tailor-made single-client studies and more than 60 independent multi-client market studies. The Ceresana business analysts are specialists in markets chemicals, plastics, additives, commodities, industrial components, packaging, and construction materials.