10 February 2010 22:11 [Source: ICIS news]
VIENNA (ICIS news)--Cracker utilisation rates could fall to approximately 78% next year unless there are additional closures, a leading consultant said on Wednesday.
“It’s a bleak outlook unless we get some closures,” said Alexander Vogel, a principal with McKinsey consultancy.
Speaking at the Global Petrochemicals 7th Annual Meeting, Vogel told delegates that “We need someone to start taking capacity out of the market”.
Ethylene capacity in Europe and non-China ?xml:namespace>
Capacity utilisation rates could fall to 75% in Europe and 63% in non-China
At the other end of the scale, 2011 utilisation rates in
Vogel cited structural overcapacity as the major concern for the petrochemicals industry during the global economic crisis.
“Combined with the new capacities coming on-stream in the
Fred du Plessis, president of consultancy FdP Associates, said that plant closures resulting from the crisis will lead to the replacement of old production capacities.
This presents an opportunity to build new, more profitable world scale capacity, he said during a roundtable discussion.
The conference, organised by the World Refining Association (WRA), ends on Thursday.
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