The global supply of ethylene and its derivatives is expected to remain in excess and “from 2014 the excess supply is likely to reach 5 million tons or more, due to the increases in excess supply in the Middle East as well as the increase in ethylene production capacity making use of shale gas in the U.S.,” says a report released by the Japanese Ministry of Economy, Trade and Industry (METI).
“As for the supply-demand balance of propylene derivatives, production capacity is expected to continue to increase in Asia and the Middle East and an excess supply situation is expected to persist, while demand strongly grows in China, India, and other regions,” states the report titled ‘Global Supply and Demand Trends for Petrochemical Products (for the period from 2004 to 2017)’.
The METI report states the demand growth for petrochemical products is notable in Asia, especially in China and India, despite the recent global economic slowdown and the prices of these products remaining continually high.
In the coming years, new and additional petrochemical plants are expected to be launched in the US, especially where shale gas is utilized as a raw material. In addition, plans for new and additional facilities are also expected to be developed, mainly in the Middle East, China and India, according to the report.
In terms of demand for petrochemical products, the study says the ratio of demand in Asia, particularly in China and India, to overall worldwide demand is growing. Hence, the influence of the Asian market on the worldwide market is increasing.
