07 December 2010 15:10 [Source: ICIS news]
DUBAI (ICIS)--Global production of ethylene is expected to rise to 119m tonnes this year because of high demand growth and inventory restocking activities, an industry analyst said on Tuesday.
“2010 could be a record year for incremental demand growth,” said Tony Potter, CMAI's managing director for the Middle East and India, at the 2010 GPCA Chemicals Market Outlook Seminar.
“However, some of this is restocking of the inventory pipeline, an event that will not repeat year after year,” Potter said.
The full impact of the recent inventory build worldwide - especially in the ?xml:namespace>
Olefin producers in the
“In addition with a new wave of new capacity in Asia, partially in
However, delays to derivative units and some interruptions to feedstock supplies have muted the impact of the new capacity on world markets, Potter added.
Looking ahead, product prices of olefins derivatives would still be driven by how producers are covering the costs of cracking their naphtha feedstock, according to the analyst.
Ethane constitutes 33% of the overall worldwide feedstock used in the production of ethylene, while propane makes up 3%, he added.
Ethylene demand growth was expected to be in excess of 4.5% until 2015, led by demand for derivatives such as PE, paraxylene (PX) and EO, he added.
The outlook seminar is part of the fifth annual Gulf Petrochemical and Chemical Association (GPCA) Forum in
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