Analysts Predict Overcapacity Critical Situation of Glycol Worldwide

ess News Agency June 14, according to reports,petrochemical production base.
analysts predict, as the new Middle East capacity toThe ethylene oxide / ethylene glycol production
start production in the next few years, globalcapacity can account for about 50% of the world,
ethylene glycol (MEG) market will face overcapacity,including Kuwait Olefins Company (TKOC) in Shuaiba
due to limited demand in the Middle East, a large100 t / a production capacity; Sabic Yanbu's YanSab
number of products will be flooding the market , andcompany's 1.6 million tons / In ethylene oxide /
then change the pattern of international trade flowsethylene glycol production capacity; Saudi Aramco
of ethylene glycol.and Sumitomo Chemical joint venture in Rabigh Saudi
Analysis of Main Inc. (CMAI) for ethylene oxide andPetroRabigh 110 tons / annual capacity; Sabic and a
derivatives business manager TisonKeel said, "Thisconsortium led by Japan's Mitsubishi Petrochemical Co.,
year there will be an unprecedented wave of newLtd. joint venture in Eastern Jubail Le 140 tons /
ethylene production capacity, about 4 million tons /annual capacity; Sabic in Jubail, 120 tons / year and
year, which slightly higher than expected productionJam Petrochemical Company of Iran's Assaluyeh 1.4
capacity extension . But in the past month, we havemillion tons / year ethylene oxide / ethylene glycol
witnessed the world spot price of ethylene glycolproduction.
softening process, especially in Asia. "Since very little domestic demand in the Middle East
Ethylene oxide (EO) is second only to the secondethylene glycol, the production of most products will
largest ethylene derivatives of polyethylene, aboutenter the market, and thus can be expected that
14% -15% of consumption of ethylene. About 77%the world trade center will be transferred to ethylene
of the ethylene oxide (EO) has transformed intoglycol in the Middle East. China is expected to import
ethylene glycol products, mainly single-ethylene glycolmost of excess capacity products to meet the
(MEG). The remaining 23% of the ethylene oxidegrowing needs of China's chemical fiber industry.
used in the production of pure ethylene oxide (PEO),Analysis of Main company that ethylene glycol plant in
the product is a reactive compound, because theyNorth America will continue to survive, due to the
can not be shipped, only in the domestic market.region for low-cost ethane feedstock advantages,
Analysis step, the company said last year the globalbut also a net exporter overall. But the United States
demand to reach 17.8 million tons of ethylene glycol iswill remain a net importer, as more and more
expected in 2014 will grow to about 23.6 million tons.factories were shut down, production costs are
Expected future global demand for ethylene glycol willlower in Canada being the transfer of raw materials.
continue to maintain strong growth momentum,Smaller companies will be forced to shut down, or
particularly in Asia.carry out production restructuring in 2009 in North
However, North America for polyester (PET) resinsAmerica, nearly one million tons / year of ethylene
and ethylene glycol container market is mature, inoxide / ethylene glycol capacity forced to close.
part because the region of plastic bottles to continuePDGlycols closed its PDGlycols Beaumont, Texas, two
development of ultra-light, which reduces the amountsets of ethylene glycol unit, a total capacity of about
of PET. On the other hand, global ethylene production681,000 t / ethylene oxide / ethylene glycol, Dow
capacity in 2010 expected to reach about 25.4 millionChemical Company has closed its Wilton 395,000 tons
tons, representing an increase of approximately 15%in the United Kingdom / year ethylene oxide /
in 2009. Most of these new production capacity willethylene glycol plant profit margins as weak demanda
come from the Middle East, and will focus on severaland weak.
large-scale olefins plant running at full capacity, where