08 December 2010 16:40 [Source: ICIS news]
LONDON (ICIS)--The ethylene-based petrochemical industry is about to pull out of the bottom of the capacity cycle and can expect much stronger operating conditions in 2013-2015, a senior executive with LyondellBasell said on Wednesday.
“We think the cycle is finally in place,” said Bhavesh Patel, senior vice president, olefins and polyolefins for Europe, Asia and international, during a webcast from the company’s first investor relations conference.
On a supply-demand basis, the recovery is about two years ahead than previously expected, Patel said.
Increases in ethylene capacity that were made in 2010 can be absorbed in 2011-2012, Patel suggested. With little additional capacity sanctioned globally, operating rates can increase, he added.
“We are in the trough from a global perspective,” he said, adding that the demand-side trend is currently positive.
LyondellBasell estimates that operating rates will increase in 2013-2015 from the levels expected in 2011.
Patel said the sector needs the equivalent of five to seven new crackers each year to satisfy growing demand from the ethylene chain, with particularly strong demand growth in ?xml:namespace>
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