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Time: 2017-02-17

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Net news: market personage says recently, although 2015 Asia area cracking device overhaul task is lighter, but Asian ethylene supply still tightens. Exports of ethylene from South Korea will fall next year as new downstream projects come on stream, while the closure of an uncompetitive cracking plant in Japan will leave Japanese exports roughly flat this year. In addition, China's import demand will be supported by the expansion of downstream derivative devices. Reduced supply and increased demand will keep ethylene supplies tight in Asia

According to statistics released by related companies, at least 14 cracking units were scheduled to be shut down for maintenance in Asia in 2015, while up to 21 ethylene cracking units were shut down for maintenance in Asia this year. In the third quarter of this year, the spot price of ethylene in Asia hit a multi-year high of over $1,500 per ton (CFR, northeast Asia). South Korea's exports will fall

Affected by new downstream derivatives units production, such as samsung total company a set of 240000 tons/year ethylene - vinyl acetate/low density polyethylene device in February 2014 and put into production, SK global chemical company is a set of 230000 tons/year of metallocene linear low density polyethylene/polyolefin elastomer flexible device formally put into production in May, South Korea ethylene exports have fallen this year. Exports may fall below 1m tonnes in 2014, compared with 1.12m tonnes in 2013, as domestic consumption increases.

South Korea's export situation is unlikely to improve in 2015, as several sets of downstream ethylene derivative units will be put into production by the end of 2014 and 2015. For example, the flexible ethylene glycol/ethylene oxide unit of Korea petrochemical industry corporation in aung SAN is scheduled for trial operation at the end of this year and will be put into production in January. The unit will be able to produce 200,000 tons of ethylene glycol per year after running at full capacity.

The olefin-conversion unit will increase ethylene consumption, and a 60,000-ton-a-year epdm unit from jinghu Polychem, the company's contracted customer, will go into production in 2015. Japanese exports were little changed

Even if most of Japan's cracking plants have been overhauled this year, a significant increase in ethylene exports is unlikely in 2015. This is because the sumitomo chemical will in May 2015 * * * * shutoff is a set of 415000 tons/year in chiba cracking unit. Japan's petrochemical producers are restructuring their operations to become more competitive amid weak domestic demand and a surge in capacity from China and the Middle East. In may, mitsubishi chemical shut down a 392,000-ton/year pyrolysis plant in kashima.

On the other hand, Japan's ethylene exports are unlikely to fall significantly next year as the country's downstream ethylene plants are also being integrated and some of its cracking plants are likely to be expanded. Mitsubishi chemical plans to expand a 500,000 ton/year cracking unit at mishima in the second quarter of next year to increase capacity by 70,000 tons/year. Earlier this year, mitsubishi chemical added another unit with a capacity of 50,000 tonnes a year after shutting down a 392,000-ton-a-year pyrolysis plant in kashima. Chinese demand is expected to grow

At the same time, China's ethylene import demand is expected to grow due to a large number of new downstream derivative units. New projects in China include a 200,000 t/yy ethylene oxide plant from occ yangzhou and a flexible ethylene oxide/ethylene glycol plant from donglian chemical, with a designed capacity of 500,000 t/yy ethylene glycol. Both units are located in yangzhou and are scheduled to go into production between the end of 2014 and the second quarter of 2015. Qingdao haijing chemical group co., ltd. is located in Qingdao, a set of 300,000 tons/year of vinyl chloride

monomer

The plant is scheduled to go into production by the end of the first quarter of 2015. Consumers are wary

Although ethylene supplies in Asia are expected to tighten next year, consumers remain cautious. They believe the petrochemical industry will remain sluggish despite the expansion of domestic production capacity and sluggish economic growth in China. New projects may face delays and existing facilities may continue to operate at reduced volumes.

The uncertainty of 2015 comes from the recent sharp drop in international oil prices, which led to a sharp fall in the price of petrochemicals in Asia. Given the volatility in oil prices, buyers in the ethylene and derivatives markets are starting to reduce inventories to *** levels.