Westford, USA, Nov. 14, 2022 (GLOBE NEWSWIRE) -- SkyQuest’s analysis of ethylene market presents an overview of the comprehensive overview and analyzes the key drivers of its recent performance. The report also discusses the challenges faced by the industry and provides insights into the future prospects of the sector.
Ethylene is a versatile chemical used in the production of numerous products, including plastics, solvents, and adhesives. This chemical is produced by processing crude oil and natural gas. The growing demand for ethylene is being driven by the increasing use of plastics in a variety of industries, such as packaging, transportation, construction, and telecommunications.
The global ethylene market has enjoyed strong growth in recent years, driven by increased demand from Asia and North America. However, this growth has been constrained by several factors, including feedstock availability and tight margins. In addition, the industry faces significant environmental challenges, as ethylene production is a major source of greenhouse gas emissions.
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Looking forward, the ethylene market is expected to continue growing at a moderate pace as demand for petrochemicals remains strong. However, producers will need to address environmental concerns through technology innovation and improved operating practices. A significant increase in the demand for ethylene from China and India is one of the key drivers for the growth of the ethylene market in Asia-Pacific. The demand for light weight plastics and packaging materials from the food & beverage and healthcare industries is also driving the growth. Stringent environmental regulations regarding emissions from petrochemical plants are restraining the growth of this market.
Oversupply and Volatile Pricing to Challenge Ethylene Market Growth
SkyQuest has released its analysis of the ethylene market. The report looks at the key trends and challenges facing the industry, and provides insights into how ethylene producers can survive and thrive in today's market landscape.
The market is booming, with production expected to reach a record high in 2022. But what does this mean for the industry's future? Our analysis shows that the ethylene industry is facing significant challenges, including an over- reliance on crude oil and tighter environmental regulations.
Today, ethylene is produced from crude oil or natural gas liquids (NGLs) in the global ethylene market. However, as crude oil prices have risen in recent years, so too has the price of ethylene. This has put pressure on margins and profits for producers. In addition, new environmental regulations are making it more difficult and costly to produce ethylene from crude oil. As a result, many producers are turning to NGLs as a feedstock for ethylene production.
However, NGLs are also becoming more expensive, which could eat into margins in the future. In order to stay profitable, producers will need to find ways to increase efficiency and reduce costs. One way to do this is by investing in new technologies that can help reduce emissions and increase production efficiency. The report notes that ethylene prices have fallen sharply in recent years, due to overcapacity and weak demand growth in the ethylene market. As a result, margins have come under pressure and many producers have been forced to cut costs or exit the market entirely.
Looking forward, we expect ethylene prices to remain volatile in the short-term as overcapacity continues to weigh on the market. In the longer-term, however, the picture is more positive, with rising demand for plastics expected to drive up prices and margins. SkyQuest’s analysis also highlights the importance of innovation and cost-effective operations for ethylene producers. In particular, those who can successfully develop new applications for their products and/or reduce their costs of production will be well-positioned to succeed in today's market environment.
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The report presents a comprehensive overview of the ethylene market, highlighting the key issues and opportunities. It also discusses the competitive landscape and future outlook for the industry.
Asia Pacific to Continue Dominating Global Ethylene Market
In its analysis of the Asia Pacific ethylene industry, SkyQuest has predicted that the region will remain the largest producer and consumer of ethylene over the next seven years. The region's production is forecast to grow at a CAGR of 7.1% during this period, while consumption is expected to grow at a CAGR of 6.4%.
Asia Pacific is the world's fastest-growing ethylene market. On the other hand, global ethylene production reached 216 million tons in 2021 and is expected to surpass 299 million tons by 2025. China is expected to continue to be the largest producer and consumer of ethylene in the region, accounting for over 40% of production and 55% of consumption in 2021. As of 2021, China has over 35 ethylene production plants and their combined production capacity to surpass 31.25 million tons by 2025. India is also forecast to be a major player in the Asia Pacific ethylene industry, with production and consumption expected to grow at a CAGR of 6.5% and 6.8%, respectively, during the forecast period. Other countries in the region such as South Korea, Taiwan and Vietnam are also expected to see significant growth in their ethylene industries over the next five years.
The rise of Taiwanese and South Korean manufacturers has been a major driving force behind this structural change in the Asia Pacific ethylene market. These companies have been able to benefit from lower feedstock costs and a more favorable investment environment in their home countries. As a result, they have been able to invest heavily in new production capacity, which has helped to meet the growing demand for ethylene in the region.
Looking ahead, SkyQuest expects that the Asia Pacific ethylene market will continue to grow at a healthy pace over the next few years. This will be driven by continued strong demand from China and other Asian countries, as well as further expansion of production capacity by Taiwanese and South Korean manufacturers.
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Major Players in the Global Ethylene Market
- Reliance Industries Limited (Mumbai, India)
- China Petroleum & Chemical (Beijing, China)
- LyondellBasell Industries Holdings (Rotterdam, Netherlands)
- Exxon Mobil Corporation (Texas, United States)
- Shell International (The Hague, Netherlands)
- SABIC (Riyadh, Saudi Arabia)
- BOREALIS AG (Vienna, Austria)
- BRASKEM SA (São Paulo, Brazil)
- Chevron Phillips Chemical Company (Texas, United States)
- INEOS GROUP AG (London, UK)
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