APIC ’16: US ethylene derivatives markets are in Asia, Latin America

SINGAPORE (ICIS)–US ethylene and derivatives exports from the first wave of new crackers will head to Asia and Latin America, executives said on Friday.

“The capacities in the US using advantaged feed from shale gas are not for the US market. They are for the markets where the markets are growing, including Asia and Latin America,” said Kurt Aerts, vice president of global specialty elastomers and butyl business at ExxonMobil Chemical.

Aerts addressed delegates in a panel discussion at the Asia Petrochemical Industry Conference (APIC) 2016 being held on 19-20 May.

However, he said there will be enough demand growth in Asia to absorb the capacities as standards of living increase among the population.

Olivier Thorel, vice president of global intermediates and ventures at Shell Chemicals, who also addressed delegates, said the US shale gas revolution is “here to stay and there are a number of ways to benefit”.

As for the impact of the new US cracker output on Asia, he called the market “a cutthroat environment. It’s not going to get any better.”