25 June 2008 09:50 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese petrochemical firms must continue to address the export impact of the expected new global capacity from the Middle East and southeast Asia, an analyst report said on Wednesday.
Expectations were that new olefin and derivative capacities in the two regions could reach more than 7.5m tonnes in 2008, said the Japan Integrated Chemical Industry Outlook report for June 2008 by Moody's.
Ethylene production capacity in SE Asia was projected to reach 7.85m tonnes/year in 2009, exceeding ?xml:namespace>
Demand for ethylene derivatives was expected to grow 6.7% and 12.8% a year in
However, ethylene supply was likely to continue to outstrip demand until 2009, the report said, adding that
However, the report also highlighted that the domestic companies have already taken a variety of actions to improve the competitiveness of their ethylene complexes, such as converting C2 production into propylene where greater growth potential lies.
Companies have also been pursuing the effective use of waste heat and steam through tie-ups with oil refineries and other petrochemical companies as well as shutting down some of their C2 derivatives operations.
The report also noted the efforts by companies to pursue growth opportunities in the overseas olefin derivatives markets such as Sumitomo's PetroRabigh project in
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