Chemical Market Associates Inc recently revealed that the ethylene prices in Asia are expected to drop by almost 16 percent from last week's US $1,480 per ton in the next few months.
However, the price may be back to around $1000 price range by the year end.
As a result of increasing supply, the ethylene prices are likely to shrink in near future, although the rapid economic and technological progress in China surged the demand, hiking the price almost 42 percent in 2006.
Experts opine that Asia's ethylene production capacity is bound to leap 11 percent to 28 million tons next year.
Shell, Europe's largest oil company, declared an investment of significant amount to start a petrochemical complex with 800,000 tons of ethylene production per annum while Exxon Mobil is planning to set up its second facility in Singapore.
BP Plc and Germany's BASF AG, the world's largest chemical maker, have built chemical plants in China.
marketing@alchempro.com
