Hottest analyst predicts global ethylene glycol ov

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Analysts predict the crisis of global ethylene glycol overcapacity

it is reported that analysts predict that with the new capacity in the Middle East beginning to be put into operation, the global ethylene glycol (MEG) market will face overcapacity in the next few years. Due to the limited demand in the Middle East, a large number of products will flood the market, which will change the international trade circulation pattern of ethylene glycol. Tison keel, manager of ethylene oxide and derivatives business of CMAI, said, "this year, there will be an unprecedented wave of new ethylene glycol production capacity, about 4million tons/year, and the production of these capacities will be slightly delayed than expected. However, in the past month, we have witnessed the weakening process of global ethylene glycol spot prices, especially in Asia."

ethylene oxide is the second largest ethylene derivative after polyethylene in the cost-effectiveness of the overall system, and consumes about 14% - 15% ethylene. About 77% of ethylene oxide (EO) is converted into ethylene glycol products, mainly monoethylene glycol (MEG). The remaining 23% of ethylene oxide is used to produce pure ethylene oxide (PEO), which is a reactive compound and can only be sold in the domestic market because it cannot be shipped. The company said that the global demand for ethylene glycol reached 17.8 million tons last year and is expected to increase to about 23.6 million tons in 2014. It is expected that the global demand for ethylene glycol will continue to maintain a strong growth momentum in the future, especially in Asia. However, the ethylene glycol market for polyester (PET) resins and containers in North America has matured, partly because of the following needs for friction coefficient experiments: plastic bottles in this region continue to be ultra lightweight, thereby reducing the amount of pet. On the other hand, the global ethylene glycol production capacity is expected to reach about 25.4 million tons in 2010, an increase of about 15% over 2009. Most of these new production capacity will come from the Middle East, and will be concentrated in the petrochemical production base where several large-scale full load olefin plants are located. These ethylene oxide/ethylene glycol capacity will account for about 50% of the world's capacity, including the 1million ton/year capacity of Kuwait olefin company (tkoc) in shuaibai; Yansab, a subsidiary of SABIC, has a 1.6 million T/a ethylene oxide/ethylene glycol production capacity in Yanbu; Saudi petro Rabigh, a joint venture between Saudi Aramco and Sumitomo chemical, has a production capacity of 1.1 million tons/year in rabig; 1.4 million tons/year capacity of Dongfang Petrochemical Co., Ltd., a consortium led by SABIC and Mitsubishi Corporation of Japan, in Jubail; SABIC's 1.2 million T/a production capacity in Jubail and 1.4 million T/a ethylene oxide/ethylene glycol production capacity in asaruye of Iran's jam petrochemical company

since there is little local demand for ethylene glycol optimized product process in the Middle East, most of the products produced will enter the market, so it can be expected that the global ethylene glycol Trade Center will be transferred to the Middle East. It is expected that China will import most of these excess capacity products to meet the growing demand of China's chemical fiber industry. The company pointed out that ethylene glycol plants in North America will continue to survive, because the region has the advantage of using low-cost ethane raw materials, and it will also be an overall net export region. However, the United States will still be a net importer. As more and more production plants are closed, production is being transferred to Canada, where the cost of raw materials is low. Smaller companies can only be forced to shut down or restructure their production capacity. In 2009, nearly 1million tons of ethylene oxide/ethylene glycol capacity in North America was forced to shut down. PD glycols shut down its two ethylene glycol units in Beaumont, Texas, with a total capacity of about 681000 tons/ethylene oxide/ethylene glycol. Dow Chemical also shut down its 395000 tons/year ethylene oxide/ethylene glycol unit in Wilton, England. Four tolerances are set in this table due to weak demand and weak profit margin

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