Market experts say that, the recent rise in spot prices of ethylene, in Asian markets may be short-lived; since supply may outstrip demand in the next few months of 2009. A slew of new capacities will go on-stream from the second quarter of the current year.
New polyethylene (PE) and ethylene glycol (MEG) plants and capacities are expected to come up in the Middle East regions in the second and third quarter, which will add to the already existing worldwide capacities, by a sizeable volume.
All together, nine new ethylene cracker capacities will go on-stream in China and the Middle East. Coupled with the impact of the global recessionary trends, it will be difficult for the ethylene markets to sustain prices in the long term.
Despite, the fact that prices of petrochemical products began to rebound since the beginning of 2009, this recovery could be short-lived for prices of ethylene derivatives, as and when the new plants start deliveries. As per last reports, ethylene is meeting a strong resistance from buyers at US $700 per ton CFR Asia.
Fibre2fashion News Desk - China
marketing@alchempro.com
